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Abstract

This paper asks how trade integration can affect poverty and income distribution in Brazil. The analysis is conducted through a static General Equilibrium and Microsimulation Model of Brazil, calibrated with the PNAD 2001 data. The model comprises 112,055 Brazilian households and 263,938 adults, distinguishing 42 activities, 52 commodities, and 27 regions. The Doha round is simulated, and its impacts upon poverty and income distribution in Brazil analyzed. Results suggest that even a large shock like the one simulated would not greatly reduce poverty in Brazil, although the poorest households benefit most.

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