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Consequences Of Trade Liberalization On Poverty And Income Distribution In Brazil

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  • Bittencourt, Maurício Vaz Lobo
  • Kraybill, David S.
  • Larson, Donald W.

Abstract

This study evaluates the regional short run impacts of reduction in import tariffs in Brazil on poverty and distribution of income related to recent free trade area agreements. Results show that trade can reduce inter-regional income inequality, but poor urban households lose with trade liberalization. In order to compensate welfare losses for the poor, this study designs and evaluates a combination of trade and tax policies, which effectively contributes to improve welfare for poor urban households.

Suggested Citation

  • Bittencourt, Maurício Vaz Lobo & Kraybill, David S. & Larson, Donald W., 2006. "Consequences Of Trade Liberalization On Poverty And Income Distribution In Brazil," 2006 Annual meeting, July 23-26, Long Beach, CA 21128, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21128
    DOI: 10.22004/ag.econ.21128
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