The Doha Round, Poverty and Regional Inequality in Brazil

This paper addresses the potential effects of the Doha round of trade negotiations on poverty and income distribution in Brazil, using an applied general equilibrium (AGE) and micro-simulation model of Brazil tailored for income distribution and poverty analysis. Of particular importance is the fact that the representative household hypothesis is replaced by a detailed representation of households. The model distinguishes 10 different labor types and has 270 different household expenditure patterns. Income can originate from 41 different production activities (which produce 52 commodities), located in 27 different regions in the country. The AGE model communicates to a micro-simulation model that has 112,055 Brazilian households and 263,938 adults. Poverty and income distribution indices are computed over the entire sample of households and persons, before and after the policy shocks. Model results show that even important trade policy shocks, such as those applied in this study, do not generate dramatic changes in the structure of poverty and income distribution in the Brazilian economy. The simulated effects on poverty and income distribution are positive, but rather small. The benefits are concentrated in the poorest households.

Bibliographic Details

Main Authors:	Filho, Joaquim Bento de Souza Ferreira, Horridge, Mark
Language:	English
Published:	World Bank, Washington, DC 2005-09
Subjects:	AGRICULTURAL EMPLOYMENT, AGRICULTURE, AVERAGE INEQUALITY, AVERAGE POVERTY, BASE YEAR, BENCHMARK, CONSUMER PRICE INDEX, CPI, CROP MIX, DATA SET, DECOMPOSABLE POVERTY MEASURES, DEMAND CURVES, DEMAND SIDE, ECONOMIC ACTIVITY, ECONOMIC CHARACTERISTICS, ECONOMIC GROWTH, ECONOMIC INTEGRATION, ELASTICITIES, ELASTICITY, ELASTICITY OF SUBSTITUTION, EMPLOYMENT, EQUILIBRIUM, EXCHANGE RATE, EXPENDITURE SURVEY, EXPENDITURES, EXPORTS, EXTERNAL ENVIRONMENT, EXTREME POVERTY, FINANCIAL INSTITUTIONS, FOREIGN TRADE, GDP, GENERAL EQUILIBRIUM MODEL, HEADCOUNT RATIO, HIGH CONCENTRATION, HOUSEHOLD DATA, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD SURVEY, HUMAN DEVELOPMENT, IMPORTS, INCOME, INCOME DISTRIBUTION, INCOME DISTRIBUTION ANALYSIS, INCOME EFFECT, INCOME GENERATION, INCOME GROUPS, INCOME HOUSEHOLDS, INCOME INCREASE, INCOME INEQUALITY, INCOME SOURCE, INCREASE POVERTY, INEQUALITY MEASURES, INFLATION, INTERNATIONAL TRADE, LABOR DEMAND, LABOR FORCE, LABOR INPUTS, LABOR MARKET, LEISURE, LINEAR MODEL, MACROECONOMIC STABILIZATION, MARGINAL PRODUCTIVITY, MINIMUM WAGE, MINIMUM WAGES, MULTILATERAL TRADE, MULTIPLIER EFFECTS, NATIONAL EMPLOYMENT, NET EFFECT, OIL, PER CAPITA INCOME, PER-CAPITA INCOME, POLICY CHANGES, POLICY MEASURES, POLICY RESEARCH, POOR, POOR BENEFIT, POOR HOUSEHOLDS, POOR PEOPLE, POVERTY, POVERTY ALLEVIATION, POVERTY ANALYSIS, POVERTY GAP, POVERTY GAP INDEX, POVERTY LEVELS, POVERTY LINE, POVERTY REDUCTION, PRICE CHANGES, QUANTITATIVE APPROACH, REAL EXCHANGE RATE, REAL INCOME, REAL TERMS, REAL WAGES, REDUCTIONS, REGIONAL INEQUALITY, REGIONAL LEVEL, RELATIVE PRICES, RELATIVE WAGES, RESEARCH METHODOLOGY, RURAL AREAS, SIMULATION TECHNIQUES, SKILLED LABOR, SKILLED WORKERS, TAX COLLECTION, TAX REVENUE, TAX REVENUES, TERMS OF TRADE, TRADE BALANCE, TRADE BARRIERS, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADE POLICIES, UNEMPLOYMENT, UNEMPLOYMENT RATE, URBAN AREAS, WAGES, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2005/09/6259353/doha-round-poverty-regional-inequality-brazil https://hdl.handle.net/10986/8591
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