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Trade Policy and Poverty Reduction in Brazil

Author

Listed:
  • Glenn W. Harrison
  • Thomas F. Rutherford
  • David G. Tarr
  • Angelo Gurgel

Abstract

A multiregion computable general equilibrium model is used to evaluate the regional, multilateral, and unilateral trade policy options of Mercosur from the perspective of the welfare of all potential partners in several proposed agreements. The focus for Brazil is on poverty impacts. The results show that the poorest households in Brazil experience gains of 1.5--5.5 percent of their consumption, which are about three to four times the average gains for Brazil. Protection in Brazil favors capital-intensive manufacturing relative to unskilled labor-intensive agriculture and manufacturing. So trade liberalization raises the return to unskilled labor relative to capital and disproportionately helps the poor. Copyright 2004, Oxford University Press.

Suggested Citation

  • Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr & Angelo Gurgel, 2004. "Trade Policy and Poverty Reduction in Brazil," World Bank Economic Review, World Bank Group, vol. 18(3), pages 289-317.
  • Handle: RePEc:oup:wbecrv:v:18:y:2004:i:3:p:289-317
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    Citations

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    Cited by:

    1. Harris, Richard G. & Robertson, Peter E., 2013. "Trade, wages and skill accumulation in the emerging giants," Journal of International Economics, Elsevier, pages 407-421.
    2. Fernando Borraz & Daniel Ferrés & Máximo Rossi, 2013. "Assessment of the distributive impact of national trade reforms in Brazil," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(2), pages 215-235, June.
    3. Fida Karam & Bernard Decaluwé, 2007. "Les effets de la migration sur le chômage marocain : une analyse en équilibre général calculable statique," Documents de travail du Centre d'Economie de la Sorbonne bla07016, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    4. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Doha Merchandise Trade Reform: What Is at Stake for Developing Countries?," World Bank Economic Review, World Bank Group, vol. 20(2), pages 169-195.
    5. Fida KARAM & Bernard DECALUWÉ, "undated". "Migration Impact on Moroccan Unemployment: a Static Computable General Equilibrium Analysis," EcoMod2008 23800058, EcoMod.
    6. Rutherford, Thomas & Tarr, David & Shepotylo, Oleksandr, 2005. "The impact on Russia of WTO accession and the Doha agenda : the importance of liberalization of barriers against foreign direct investment in services for growth and poverty reduction," Policy Research Working Paper Series 3725, The World Bank.
    7. Silvia Laens & María Inés Terra, 2005. "MERCOSUR: Asymmetries and Strengthening of the Customs Union: Options for the Common External Tariff," IDB Publications (Working Papers) 2923, Inter-American Development Bank.
    8. Tarr, David G., 2013. "Putting Services and Foreign Direct Investment with Endogenous Productivity Effects in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, Elsevier.
    9. Jeong-Soo OH & Phouphet Kyophilavong, 2015. "Trade Liberalization and Poverty in Developing Countries: Literature Survey," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(2), pages 86-94, Fabruary.
    10. Edson Paulo Domingues & Kênia Barreiro de Souza, 2012. "The Welfare Impacts of Changes in the Brazilian Domestic Work Market," One Pager 180, International Policy Centre for Inclusive Growth.
    11. Jesper Jensen & David Tarr, 2014. "Deep Trade Policy Options for Armenia: The Importance of Trade Facilitation, Services and Standards Liberalization," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 19, pages 453-508 World Scientific Publishing Co. Pte. Ltd..
    12. Carlos Azzoni & Jonathan Brooks & Joaquim Guilhoto & Scott McDonald, 2007. "Who in Brazil Will Gain from Global Trade Reforms?," The World Economy, Wiley Blackwell, vol. 30(10), pages 1568-1593, October.
    13. Countryman, Amanda & Ufer, Danielle, 2016. "Potential Poverty Effects of the Special Safeguard Mechanism: the Case of Wheat," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236023, Agricultural and Applied Economics Association.
    14. Rutherford, Thomas & Tarr, David, 2008. "Regional household and poverty effects of Russia's accession to the world trade organization," Policy Research Working Paper Series 4570, The World Bank.
    15. Thomas F. Rutherford & David G. Tarr, 2014. "Poverty effects of Russia's WTO accession: Modeling “real” households with endogenous productivity effects," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 12, pages 287-306 World Scientific Publishing Co. Pte. Ltd..
    16. Porzecanski, Arturo C., 2014. "Brazil’s Place in the Global Economy," MPRA Paper 54257, University Library of Munich, Germany.
    17. Ernesto Valenzuela & Kym Anderson & Thomas Hertel, 2008. "Impacts of trade reform: sensitivity of model results to key assumptions," International Economics and Economic Policy, Springer, vol. 4(4), pages 395-420, February.
    18. Jensen, Jesper & Tarr, David G., 2010. "Regional trade policy options for Tanzania : the importance of services commitments," Policy Research Working Paper Series 5481, The World Bank.
    19. Rutherford, Thomas & Tarr, David & Shepotylo, Oleksandr, 2005. "Poverty effects of Russia's WTO accession : modeling"real"households and endogenous productivity effects," Policy Research Working Paper Series 3473, The World Bank.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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