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Productive structure and income distribution: The Brazilian case

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  • Moreira, Guilherme R.C.
  • Almeida, Leandro
  • Guilhoto, Joaquim M.
  • Azzoni, Carlos R.

Abstract

The objective of the paper is to assess the impacts of some of the important changes occurred in the Brazilian economy in the 90s on income distribution. A Pure Leontief Model and a Leontief-Miazawa Model were utilized to portray the structure of the economy in both years, and to perform counterfactual simulations on some important changes occurring during the period. The methodology allowed for the identification of the high- and low-inequality sectors in both years, and to assess their contribution to the increasing inequality during the period. It is interesting to notice that some sectors with low internal inequality ended-up provoking increased global inequality through their interaction pattern with other sectors in the economy, and through the consumption structure. The results also indicate that the change in sectoral shares in the period contributed to diminishing inequality. Therefore, the causes for increasing inequality remain within the distribution of wages within the sectors.

Suggested Citation

  • Moreira, Guilherme R.C. & Almeida, Leandro & Guilhoto, Joaquim M. & Azzoni, Carlos R., 2008. "Productive structure and income distribution: The Brazilian case," The Quarterly Review of Economics and Finance, Elsevier, vol. 48(2), pages 320-332, May.
    • Handle: RePEc:eee:quaeco:v:48:y:2008:i:2:p:320-332
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    1. Ferreira FIlho, Joaquim Bento de Souza & Horridge, Mark, 2005. "The Doha Round, Poverty and Regional Inequality in Brazil," Conference papers 331332, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. R. Azzoni, Carlos & J. M. Guilhoto, Joaquim & A. Haddad, Eduardo & G. Silveira, Fernando & A. Menezes, Tatiane & M. Hasegawa, Marcos, 2005. "Commodity Price Changes and Their Impacts on Poverty in Developing Countries: the Brazilian Case," TD NEREUS 2-2005, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
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    7. Kenichi Miyazawa, 1960. "Foreign Trade Multiplier, Input-Output Analysis and the Consumption Function," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 74(1), pages 53-64.
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    Cited by:

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    2. Moreira, Guilherme Renato Caldo & Ichihara, Silvio Massaru & Guilhoto, Joaquim José Martins, 2007. "O impacto do aumento das exportações de álcool sobre a distribuição de renda do Brasil [The impact of the increased exports of ethanol on the distribution of income of the Brazil]," MPRA Paper 31517, University Library of Munich, Germany.
    3. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Publications - Reports 8083, The World Bank Group.

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    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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