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

Author

Listed:
  • Marta Castilho

    (UFF - Universidade Federal Fluminense [Rio de Janeiro])

  • Marta Menéndez

    (PSL - PSL Research University, PSE - Paris School of Economics, DIAL - Développement, institutions et analyses de long terme, UP9 - Université Paris 9, Dauphine - Université Paris-Dauphine)

  • Aude Sztulman

    (IRD - Institut de Recherche pour le Développement, DIAL - Développement, institutions et analyses de long terme, LEDa - Université Paris Dauphine (Paris 9))

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 Menéndez & Aude Sztulman, 2015. "Poverty and Inequality Dynamics in Manaus: Legacy of a Free Trade Zone?," Working Papers halshs-01245394, HAL.
  • Handle: RePEc:hal:wpaper:halshs-01245394
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01245394
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    References listed on IDEAS

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    More about this item

    Keywords

    Free trade zone; poverty; inequality; Manaus; Brazil;

    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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