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Winners and Losers from a Commodities-for-Manufactures Trade Boom

  • Francisco Costa
  • Jason Garred
  • Joao Paulo Pessoa

A recent boom in commodities-for-manufactures trade between China and other developing countries has led to much concern about the losers from rising import competition in manufacturing, but little attention on the winners from growing Chinese demand for commodities. Using census data for Brazil, we find that local labour markets more affected by Chinese import competition experienced slower growth in manufacturing wages and in-migration rates between 2000 and 2010, and greater rises in local wage inequality. However, in locations benefiting from rising Chinese demand, we observe higher wage growth, lower takeup of cash transfers and positive effects on job quality.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1269.

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Date of creation: May 2014
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Handle: RePEc:cep:cepdps:dp1269
Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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