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Trade and Factor Market Distortions: Effects on Employment in Brazil

In: Human Resources, Employment and Development

Author

Listed:
  • Jose L. Carvalho
  • Claudio L. S. Haddad

Abstract

The impact of trade policies on labour absorption depends on how those policies affect the relative price of the final products or the relative price of the factors of production. It also depends on the factor market conditions with respect to competition. Since distortions in the factor markets can invalidate the predictions advanced by the HeckscherOhlin theorem and mitigate the effects of commercial policies on factor use, it is instructive to analyse these markets, giving special emphasis to distortions and their effects on relative factor prices and uses.In this paper, we shall describe the main distortions in the factor markets in Brazil and their possible effects on factor use in view of Brazil’s trade structure.

Suggested Citation

  • Jose L. Carvalho & Claudio L. S. Haddad, 1983. "Trade and Factor Market Distortions: Effects on Employment in Brazil," International Economic Association Series, in: Burton Weisbrod & Helen Hughes (ed.), Human Resources, Employment and Development, chapter 27, pages 405-428, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-22741-9_27
    DOI: 10.1007/978-1-349-22741-9_27
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