Abstract
This paper quantifies the distributional and poverty effects of trade liberalization in Brazil using household survey data. We estimate the consumption and labor impact of Mercosur trade reform following the methodology suggested by Porto (J Int Econ 70:140–160, 2006) and Nicita (J Dev Econ 89(1):19–27, 2009). Results show that trade liberalization had a pro-poor effect in Brazil. This result is largely explained by two major observations: the fact that consumption good prices decreased after Brazil entered Mercosur and a close to zero labor income effect. We find that poverty decreased after national trade liberalization (both for women and men). Additionally, we obtained no significant inequality effects after national trade reforms.
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We would like to acknowledge three anonymous referees and the Editor of the Journal for their invaluable comments and suggestions, which have improved the paper enormously. We also thank Marcela Arnaiz and Magdalena Tubio for excellent research assistance. We are grateful to participants at the 2008 meeting of the LACEA/IADB/WB/UNDP Research Network on Inequality and Poverty, the 2008 meeting of the Regional Integration Network, the 2009 LACEA annual meeting and the 2009 meeting of the Research Committee Development Economics at the University of Frankfurt for helpful comments. We also are grateful to Fabio Miessi for helping us analyzing the Brazilian expenditure survey. This paper was financed by the Trade and Poverty Fund of the Inter-American Development Bank. All errors are our responsibility.
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Borraz, F., Ferrés, D. & Rossi, M. Assessment of the distributive impact of national trade reforms in Brazil. J Econ Inequal 11, 215–235 (2013). https://doi.org/10.1007/s10888-011-9213-0
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DOI: https://doi.org/10.1007/s10888-011-9213-0