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The effect of import competition on Brazil’s manufacturing labor market in the 2000s: Are imports from China different?

Lourenco Paz

The International Trade Journal, 2018, vol. 32, issue 1, 76-99

Abstract: This study uses the increased openness of the Brazilian economy in the 2000s to assess the impacts of trade on its manufacturing sector. Using household data, this study’s results imply that a higher import penetration reduces the employment level in manufacturing and fosters labor reallocation across industries. The magnitude of these effects changes according to the Chinese share of these imports. I find no evidence that trade exposure affected the shares of self-employed and informal workers. Finally, the new macroeconomic policy implemented by the Brazilian government in 2008 altered the way in which trade exposure affected manufacturing labor market outcomes.

Date: 2018
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DOI: 10.1080/08853908.2017.1389323

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