Trade Liberalization, Inequality and Poverty in Brazilian States

Marta Castilho (1) , Marta Menéndez (2, 3, 4, 5) , Aude Sztulman (6)

1 UFF - Universidade Federal Fluminense [Rio de Janeiro]
2 DIAL - Développement, institutions et analyses de long terme
3 PSE - Paris School of Economics
4 PSE - Paris-Jourdan Sciences Economiques
5 Université Paris Dauphine-PSL
6 LEDA-DIAL - Développement, Institutions et Modialisation

This paper studies the impact of globalization on household income inequality end poverty using detailed microdata across Brazilian states from 1987 to 2005. Results suggest that the Brazilian states more exposed to tariff cuts experienced smaller reductions in household poverty and inequality. Contrasting results emerge when we disaggregate into rural and uraban areas within states: trade liberalization contributes to growth in poverty and inequality in urban areas and may be linked to evidence indicating that state poverty and inequality in Brazil decrease with rising export exposure and increase with import penetration.

Mots clés: Brazilian states; Latin America; Trade Liberalization; Poverty and inequality

Domaines: Economies et finances

Marta Castilho, Marta Menéndez, Aude Sztulman. Trade Liberalization, Inequality and Poverty in Brazilian States. 2010. ⟨halshs-00967356⟩