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.
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.
- Content Type Journal Article
- Pages 1-21
- DOI 10.1007/s10888-011-9213-0
- Authors
- Fernando Borraz, Banco Central del Uruguay and Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República, Diagonal Fabini 777, CP: 11,100 Montevideo, Uruguay
- Daniel Ferrés, IEEM Business School and Universidad de Montevideo, Montevideo, Uruguay
- Máximo Rossi, Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República, Montevideo, Uruguay
- Journal Journal of Economic Inequality
- Online ISSN 1573-8701
- Print ISSN 1569-1721