Winners and Losers from a Commodities-for-Manufactures Trade Boom

39 Pages Posted: 30 Sep 2015 Last revised: 10 Apr 2016

See all articles by Francisco Costa

Francisco Costa

FGV EPGE

Jason Garred

University of Ottawa - Department of Economics

João Paulo Pessoa

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics

Date Written: April 8, 2016

Abstract

A recent boom in commodities-for-manufactures trade between China and other developing countries has led to much concern about the losers from rising import competition in manufacturing, but little attention on the winners from growing Chinese demand for commodities. Using census data for Brazil, we find that local labour markets more affected by Chinese import competition experienced slower growth in manufacturing wages between 2000 and 2010. However, we observe faster wage growth in locations benefiting from rising Chinese commodity demand during the same period.

JEL Classification: F14, F16, J3, J6, O17

Suggested Citation

Costa, Francisco and Garred, Jason and Pessoa, João Paulo and Pessoa, João Paulo, Winners and Losers from a Commodities-for-Manufactures Trade Boom (April 8, 2016). Available at SSRN: https://ssrn.com/abstract=2666749 or http://dx.doi.org/10.2139/ssrn.2666749

Francisco Costa (Contact Author)

FGV EPGE ( email )

Praia de Botafogo 190/1119C
Rio de Janeiro RJ 22253-900
Brazil

HOME PAGE: http://https://sites.google.com/site/fjmcosta/

Jason Garred

University of Ottawa - Department of Economics ( email )

120 University
Social Sciences Building, Room 9005
Ottawa, Ontario K1N 6N5
Canada

HOME PAGE: http://web5.uottawa.ca/www5/jasongarred/index.html

João Paulo Pessoa

Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics ( email )

Rua Itapeva 474 s.1202
São Paulo, São Paulo 01332-000
Brazil

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

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