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

Author

Listed:
  • Costa, Francisco J M

    (FGV EPGE Brazilian School of Economics and Finance)

  • Garred, Jason
  • Pessoa, João Paulo

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.

Suggested Citation

  • Costa, Francisco J M & Garred, Jason & Pessoa, João Paulo, 2016. "Winners and Losers from a Commodities-for-Manufactures Trade Boom," SocArXiv vjae6_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:vjae6_v1
    DOI: 10.31219/osf.io/vjae6_v1
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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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