Commodity Price Changes and Their Impacts on Poverty in Developing Countries: The Brazilian Case

30 Pages Posted: 2 Aug 2011

See all articles by Carlos Roberto Azzoni

Carlos Roberto Azzoni

University of São Paulo (USP) - Department of Economics

Joaquim Guilhoto

Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI); University of Sao Paulo

Eduardo A. Haddad

University of Sao Paulo (USP) - Department of Economics; University of Illinois at Urbana-Champaign - Regional Economics, Application Labratory, REAL

Fernando Gaiger Silveira

Institute of Applied Economic Research (IPEA)

Tatiane A. de Menezes

University of São Paulo (USP) - Department of Economics

Marcos M. Hasegawa

Universidade Federal do Paraná - UFPR

Date Written: June 6, 2011

Abstract

The objective of the paper is to provide an estimative of the impacts that changes in international prices of agricultural commodities will have on income distribution and poverty in Brazil. To do so, a Social Accounting Matrix is constructed and applied, using a Leontief-Miyazawa model framework. The SAM is defined for 40 products, and households are allocated into 10 groups, being 6 agricultural and 4 urban. Demand elasticities (price and income) for the products defined in the SAM are considered, as well as limitations on the supply of agricultural inputs. The results indicate that a 50% reduction in tariffs across the board, by all countries and for all products, will produce minor impacts in Brazil: national GDP would increase by up to 1.6%, and the impacts on poverty and income inequality, although positive, would be very small.

Keywords: Poverty, Brazil, Agriculture, Trade Liberalization, Social Accounting Matrix

JEL Classification: Q17, D58, O15

Suggested Citation

Azzoni, Carlos Roberto and Guilhoto, Joaquim José Martins and Haddad, Eduardo A. and Silveira, Fernando Gaiger and Menezes, Tatiane A. de and Hasegawa, Marcos Minoru, Commodity Price Changes and Their Impacts on Poverty in Developing Countries: The Brazilian Case (June 6, 2011). Available at SSRN: https://ssrn.com/abstract=1858879 or http://dx.doi.org/10.2139/ssrn.1858879

Carlos Roberto Azzoni

University of São Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo SP, 05508-900
Brazil
+55 11 818-5870 (Phone)
+55 11 813-4743 (Fax)

Joaquim José Martins Guilhoto (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI) ( email )

Paris
France

University of Sao Paulo ( email )

Av. Prof. Luciano Gualberto, 908
FEA2
Sao Paulo, 05508-010
Brazil
+ 55 011 3091-5870 (Phone)
+ 55 011 3813-4743 (Fax)

Eduardo A. Haddad

University of Sao Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo, SP 05508-900
Brazil

HOME PAGE: http://www.usp.br/nereus

University of Illinois at Urbana-Champaign - Regional Economics, Application Labratory, REAL ( email )

United States

Fernando Gaiger Silveira

Institute of Applied Economic Research (IPEA) ( email )

Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil

Tatiane A. de Menezes

University of São Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo SP, 05508-900
Brazil

Marcos Minoru Hasegawa

Universidade Federal do Paraná - UFPR ( email )

Av. Pref. Lothario Meissner, 632
Centro
Curitiba - PR, 80060-000
Brazil
+55(41)3360-4350 (Phone)

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