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Trade policy and poverty reduction in Brazil (English)

A multi-region 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.


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    Harrison, Glenn W. Rutherford, Thomas F. Tarr, David G. Gurgel, Angelo

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    Journal Article

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    Latin America & Caribbean,

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    Trade policy and poverty reduction in Brazil

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    free trade agreement;improved market access;terms of trade effect;common external tariff;impact of trade liberalization;terms of trade loss;terms of trade improvement;terms of trade gain;applied trade policy analysis;constant elasticity of substitution;computable general equilibrium model;food and agriculture organization;purchasing power parity adjustment;brazilian census;household expenditure and income;primary factors of production;national account;preferential access;trade policy options;share of income;urban household;food and agricultural;trade policy changes;rules of origin;factor share;central elasticity;poor household;tariff cut;household income;protection data;agriculture and service;change in welfare;agricultural trade liberalization;measure of poverty;per capita income;free trade area;lost tariff revenue;antidumping action;agricultural product;restrictive rule;Trade Policies;stringent rules;regions of origin;returns to capital;agricultural and food;tariff import;trade diversion effect;tariff on import;preferential trade agreement;preferential tariff rate;unilateral trade liberalization;trade flow data;tradable goods relative;social accounting matrix;endogenous productivity effects;Balance of Trade;regional trading arrangements;household survey information;customs union agreement;trade policy reform;unilateral trade policy;vegetable and fruit;elasticity of transformation;trade in goods;agricultural exporting nations;multilateral trade liberalization;linear expenditure system;regional integration initiative;trade policy choice;trade and poverty;share of capital;elasticity of demand;real exchange rate;household expenditure survey;department of agriculture;preferential trade arrangement;household expenditure patterns;source income;source of income;partner country;welfare gains;e-mail address;export subsidy;export subsidies;industrial country;agricultural market;protected products;tariff liberalization;factor income;demand function;rental rate;representative household;domestic production;household level;antidumping policy;aggregate import;national poverty;individual household;high elasticity;dairy product;nontariff barrier;protection rate;meat sector;capital-intensive sector;profitable sector;food product;price change;meat product;bovine meat;real income;paddy rice;agricultural exporter;constant return;multilateral negotiation;expenditure share;antidumping duty;labor-intensive sectors;income estimate;Exchange Rates;welfare change;stratified sample;antidumping measures;skilled wage;cereal grain;efficiency loss;improved resource;increased access;unskilled wage;poverty impact;small country;household behavior;consumer expenditure;household factor;policy shock;tariff-free access;oil seed;preferential basis;labor capital;equity issue;mediterranean countries;association agreement;comparative advantage;steel sector;preferential area;aggregate welfare;Oil Export;electrical machinery;survey sample;assessing poverty;elastic supply;electrical equipment;food basket;trade creation;protectionist device;small economy;absolute change;high tariff;export supply;additive regionalism;equilibrium outcome;preferential arrangement;export price;diverting trade;Poverty measures;tariff peaks;commodity group;product category;relative gain;manufacturing sector;high share;perverse results;severe problems;empirical estimation;factor return;factor payment;trade creating;brazilian data;government revenue;leather products;financial asset;nontradable goods;increasing return;external trade;common tariff;fixed coefficient;ad valorem;Border Protection;international food;tariff equivalent;rural area;agricultural liberalization;tariff protection;model result;import share;import tariff;positive tariffs;policy simulation;elasticity value;aggregate demand;capital stock;utility function;equivalent variation;relative price;Research Support;model specification;poverty headcount;poverty datum;personal consumption;research institute;comparative static;trade model



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Harrison, Glenn W. Rutherford, Thomas F. Tarr, David G. Gurgel, Angelo

Trade policy and poverty reduction in Brazil (English). Washington, D.C. : World Bank Group.