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  • 1
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    Brasília: Instituto de Pesquisa Econômica Aplicada (IPEA)
    Publication Date: 2020-01-17
    Description: In this paper, we estimate the distributive impacts of trade openness on within sector income distribution. The empirical approach is to estimate the econometric relation between effective rates of protection and various indicators of within sector inequality: the Gini and Theil indices of wage inequality in each economic sector, the ratio between wages of production and nonproduction workers, and the ratio between the wage bill and value added for each sector. The econometric specification is a fixed effects model in which each sector is compared to itself in various moments in time. The results show a significant but small effect of trade openness upon wage inequality as measured by Gini and Theil Coefficients and also small effects in the opposite direction between trade openness and the wage bill to value added ratio. This means that a substantive reduction in effective rates of protection will lead to small reductions in wage inequality and even smaller increases in the functional inequality in each sector.
    Keywords: F16 ; ddc:330 ; effective rates of protection ; wage inequality
    Language: Portuguese
    Type: doc-type:workingPaper
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  • 2
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    Brasília: Instituto de Pesquisa Econômica Aplicada (IPEA)
    Publication Date: 2020-01-17
    Description: This paper calculates effective tariffs by industrial sector for Brazil from 2000 to 2015. Effective tariff differs from nominal tariff in that it takes into consideration the protection given to industrial inputs so that a sector whose products are protected by high tariffs may also be burdened by high tariffs on its inputs, leading to a lower effective tariff. Two series are calculated: 2000 to 2009 and 2010 to 2015. The reason for this is that the National Accounts changed their classification of economic sectors in 2010. Results indicate that: i) effective rates of protection are highly varied in Brazil, according to sector; ii) effective rates of protection have fallen slightly in the 15 years from 2000 to 2015; and iii) some sectors have seen their rates of protection vary considerably over this fifteen-year period, but in most sectors the ERP did not vary much.
    Keywords: F13 ; ddc:330 ; trade policy ; effective rates of protection ; nominal rates of protection
    Language: Portuguese
    Type: doc-type:workingPaper
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