Trade and Poverty

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Trade and Poverty
GROUP 1 Macro micro impacts in Brazil from rich country liberalization By Jean Luc Erero Marina Kuzmenko GROUP 2 3 Liberalization in developing countries and poverty impacts By Joanna Komorowska Alejandro Dellachiesa Mia Mikic Mitchell Ginsburg GROUP 4 Comparison across developing countries National welfare poverty comparisons By Torbjorn Jansson Christian Arnault Emini
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Macro micro impacts in Brazil from rich country
liberalization
By Jean Luc Erero Marina Kuzmenko
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Introduction

• How trade liberalization in rich countries
  affects Brazil economy
• Sectoral impact
• Poverty reduction

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Graphical representation
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Sectoral effectsqo(i,r)SHRDM(i,r)qds(i,r)sum(
s,REG,SHRXMD(i,r,s) qxs(i,r,s))tradslack(i,r)
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Effects of the liberalization
Description pfob pcif qo qds
1 CropsF 11.8 10.94 -2.53 -0.47
2 CropsP 5.96 5.15 -2.12 -1.84
3 MeatDairyF 16.65 14.64 25.85 26.83
4 MeatDairyP 10.06 9.52 37.53 0.21
5 OthFoodBev 5.01 4.49 2.8 0.51
6 TextApparF 10.95 10.29 -14.17 -6.03
7 TextApparP 3.08 2.84 -5.64 -2.92
8 HousUtils 2.86 2.86 4.18 4.32
9 WRTrade 3.16 3.16 0.46 0.59
10 Mnfcs 2.65 2.37 -8.65 -6.83
11 TransComm 2.28 2.24 0 0
12 FinService 3.38 3.38 -0.92 -0.43
13 HousOthServ 3.3 3.3 0.49 0.57
Total 81.14 75.19 37.28 14.51
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Poverty reductionDemand for endowment (qfe)
MeatDairyF
TempCoeff 2 UnSkLab 3 SkLab
1 e1_afe 0 0
2 qva 22.09 22.09
3 e1_ESUBVA 3.54 3.52
Total 25.63 25.61

MeatDairyP
TempCoeff 2 UnSkLab 3 SkLab
1 e1_afe 0 0
2 qva 37.53 37.53
3 e1_ESUBVA 0.55 0
Total 38.09 37.53
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Summary

• The impact of agricultural liberalization in the
  rich countries benefited Brazil in agricultural
  sector
• Meat producers benefited the most
• Output expands, draw more labors, income and
  wages increase
• Poverty reduced