Trade Policy and Poverty Reduction in Brazil

Glenn Harrison, Thomas F. Rutherford, David Tarr and Angelo Gurgel

Chapter 10 in Applied Trade Policy Modeling in 16 Countries:Insights and Impacts from World Bank CGE Based Projects, 2014, pp 225-253 from World Scientific Publishing Co. Pte. Ltd.

Abstract: A multiregion computable general equilibrium model is used to evaluate the regional, multilateral, and unilateral trade policy options of Mercosur from the perspective of the welfare of all potential partners in several proposed agreements. The focus for Brazil is on poverty impacts. The results show that the poorest households in Brazil experience gains of 1.5–5.5 percent of their consumption, which are about three to four times the average gains for Brazil. Protection in Brazil favors capital-intensive manufacturing relative to unskilled labor-intensive agriculture and manufacturing. So trade liberalization raises the return to unskilled labor relative to capital and disproportionately helps the poor

Keywords: International Trade Policy; Developing Countries; Computable General Equilibrium; World Bank; Regional Trade Policy; Services Liberalization; Foreign Direct Investment; Trade and Poverty (search for similar items in EconPapers)
Date: 2014
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Related works:
Journal Article: Trade Policy and Poverty Reduction in Brazil (2004)
Working Paper: Trade Policy and Poverty Reduction in Brazil (2004)
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