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Poverty and Inequality Dynamics in Manaus: Legacy of a Free Trade Zone ?

Author

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  • Marta Castilho

    () (Instituto de Economia, Universidade Federal do Rio de Janeiro, Brazil)

  • Marta Menendez

    () (PSL, Université Paris-Dauphine, LEDa, IRD UMR DIAL)

  • Aude Sztulman

    () (PSL, Université Paris-Dauphine, LEDa, IRD UMR DIAL)

Abstract

This study contributes to the literature on the social impacts of Special Economic Zones by analyzing the dynamics of poverty and inequality in the Brazilian state of Amazonas, where the Free Trade Zone of Manaus (FTZM) is located. Using census data, micro-decompositions and counterfactual simulations, we show that if labor income was a major driver of poverty and inequality declines for the municipality of Manaus in the 2000-2010 decade, non-labor income was far more important in the rest of the state of Amazonas. Our contrasting results illustrate both the benefits and limitations of the influence of the FTZM. A better targeting of both social policies and training programs could improve distributional outcomes in the whole area.

Suggested Citation

  • Marta Castilho & Marta Menendez & Aude Sztulman, 2015. "Poverty and Inequality Dynamics in Manaus: Legacy of a Free Trade Zone ?," Working Papers DT/2015/18, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt201518
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    References listed on IDEAS

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    Keywords

    Free trade zone; poverty; inequality; Manaus; Brazil._________________________________ Cette étude analyse la dynamique de la pauvreté et des inégalités dans l'état brésilien d'Amazonas; où se situe la zone de libre-échange de Manaus (FTZM); et vise ainsi à contribuer à la recherche sur les conséquences sociales des Zones Economiques Spéciales. A l’aide de données de recensement; et en mobilisant des méthodes de décompositions et de micro-simulations; nous montrons que les revenus du travail jouent un rôle déterminant dans la diminution de la pauvreté et des inégalités dans la municipalité de Manaus au cours des années 2000-2010. Tel n’est pas le cas dans le reste de l'état d'Amazonas; où ce sont les revenus autres que ceux du travail qui expliquent le déclin de la pauvreté et des inégalités. Ces résultats contrastés illustrent à la fois les avantages et les limites de l'influence de la FTZM. Un meilleur ciblage des politiques sociales ainsi que des programmes de formation pourraient contribuer à améliorer les résultats en termes de distribution des revenus dans l'ensemble de la région.;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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