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The Impact of Trade Liberalization in Rich Countries on Poverty in Brazil

This study explores the macro and microeconomic effects of trade liberalization in rich countries on Brazil's economy, particularly focusing on its agricultural sector. It highlights how increased demand for Brazilian agricultural exports, especially meat, leads to expanded output, higher wages, and increased labor demand. The study presents graphical representations of sectoral impacts and illustrates how trade liberalization contributes to poverty reduction in Brazil. The findings underscore the positive effects on income levels and employment, particularly for those in agriculture.

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The Impact of Trade Liberalization in Rich Countries on Poverty in Brazil

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Presentation Transcript

  1. Trade and Poverty

  2. Macro & micro impacts in Brazil from rich country liberalization

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

  4. Graphical representation

  5. Sectoral effectsqo(i,r)=SHRDM(i,r)*qds(i,r)+sum(s,REG,SHRXMD(i,r,s)* qxs(i,r,s))+tradslack(i,r)

  6. Effects of the liberalization

  7. Poverty reductionDemand for endowment (qfe)

  8. 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

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