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Trade Policy and Poverty Reduction in Brazil

Glenn Harrison (), Thomas Rutherford (), David Tarr and Angelo Gurgel ()

Working Papers Central Bank of Chile from Central Bank of Chile

Abstract: Using a multi-region CGE model, we evaluate the regional, multilateral and unilateral trade policy options of MERCOSUR from the perspective of the welfare of all potential partners. In Brazil, we focus on poverty impacts. We find that the poorest households in Brazil experience percentage gains of between 1.5 to 5.5 percent of their consumption, which is about three to four times the average 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, thereby helping the poor.

Date: 2004-12
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Chapter: Trade Policy and Poverty Reduction in Brazil (2014) Downloads
Journal Article: Trade Policy and Poverty Reduction in Brazil (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:chb:bcchwp:276

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