REGIONAL SHORT-RUN EFFECTS OF TRADE LIBERALIZATION IN BRAZIL

Mauricio Bittencourt, Donald Larson and David Kraybill

Economic Systems Research, 2010, vol. 22, issue 1, 65-85

Abstract: We use a single-country multi-regional computable general equilibrium model to evaluate regional short-run impacts of reduction in import tariffs resulting from recent free trade area agreements, on poverty and distribution of income in Brazil. Results show that trade can reduce inter-regional income inequality, but poor urban households lose with trade liberalization. Trade policy alone is not sufficient for achieving more equitable income distribution goals in Brazil. Without greater investment in human and physical capital, incomes in most regions of Brazil are likely to lag behind incomes in the South/Southeast, the most developed regions in the country.

Keywords: Trade liberalization; Income distribution; CGE models; Brazil (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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Working Paper: Regional Short Run Effects of Trade Liberalization in Brazil (2005)
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DOI: 10.1080/09535311003677628

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