Trade Liberalization, Inequality and Poverty in Brazilian States

Marta Menéndez, Aude Sztulman and Marta Castilho ()
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Marta Menéndez: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Aude Sztulman: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper studies the impact of trade liberalization and international trade on household income inequality and poverty using detailed micro-data across Brazilian states, from 1987 to 2005. Results suggest that Brazilian states that were more exposed to tariff cuts experienced smaller reductions in household poverty and inequality. If significance of results on Brazilian states depends on the choice of poverty and inequality indicators, robust and contrasting results emerge when we disaggregate into rural and urban areas within states. Trade liberalization contributes to poverty and inequality increases in urban areas and may be linked to inequality declines in rural areas (no significant effect on rural poverty appears from our study). In terms of observed integration to world markets, import penetration plays a similar role as trade liberalization for Brazilian states as a whole. On the contrary, rising export exposure appears to have significantly reduced both measures of household welfare.

Keywords: Poverty; Trade liberalization; Brazil states; Inequality (search for similar items in EconPapers)
Date: 2012
Note: View the original document on HAL open archive server: https://hal.science/hal-01617520v1
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Citations: View citations in EconPapers (33)

Published in World Development, 2012, 40 (4), ⟨10.1016/j.worlddev.2011.09.018⟩

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Related works:
Journal Article: Trade Liberalization, Inequality, and Poverty in Brazilian States (2012)
Working Paper: Trade Liberalization, Inequality and Poverty in Brazilian States (2010)
Working Paper: Trade Liberalization, Inequality and Poverty in Brazilian States (2010)
Working Paper: Trade Liberalization, Inequality and Poverty in Brazilian States (2010)
Working Paper: Trade Liberalization, Inequality and Poverty in Brazilian States (2010)
Working Paper: Trade liberalization, inequality and poverty in Brazilian states (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01617520

DOI: 10.1016/j.worlddev.2011.09.018

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