Quantifying the effects of trade liberalisation in Brazil : a computabel general equilibrium model (CGE) simulation / Sónia Araújo, Dorothee Flaig

Englisch

Paris : OECD Publishing, 2016

1 Online-Ressource (circa 41 Seiten) : Illustrationen

Zusammenfassung in französischer Sprache

DOI: 10.1787/5jm0qwmff2kf-en

*Economics ; Trade ; Brazil

Handelseffekt / Handelsliberalisierung / Betriebliche Wertschöpfung / Internationale Arbeitsteilung / CGE-Modell

Amtsdruckschrift / Government document / Arbeitspapier / Working paper / Online-Publikation / Online-publication

Journal of Economic Literature: F13

Journal of Economic Literature: F47

Journal of Economic Literature: F66

Journal of Economic Literature: F61

Journal of Economic Literature: F62

Brazil remains a fairly closed economy, with small trade flows relative to its share of world income. This paper explores the effects of three possible policy reforms to strengthen Brazils integration into global trade: a reduction in import tariffs, less local content requirements and a full zero-rating of exports in indirect taxes. A simulation analysis using the OECD Multi-Region Trade CGE model suggests that current policies are holding back exports, production and investment in Brazil. The model simulations suggest significant scope for trade policy reforms to strengthen industrial development and export competitiveness. Results also show that the expansion of investment and production would be accompanied by significant employment gains. Moreover, employment growth is higher for low-skilled occupations, implying that a major trade and tax policy reform aiming at liberalising trade flows would particularly help those at the lower end of the income distribution.

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