Improving skills to harness the benefits of a more open economy in Brazil

Abstract

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 | ECO/WKP(2021)12 IMPROVING SKILLS TO HARNESS THE BENEFITS OF A MORE OPEN ECONOMY IN BRAZIL UnclassifiedThis document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

Post-COVID-19 trade scenarios and priorities for Latin America

“…Evidence suggests that consumers benefit from deeper trade integration through lower prices and a larger variety of available goods (Amiti, Redding and Weinstein, 2019 [52]; Grundke and Arnold, 2019 [53]). Since low-income households spend a proportionately higher share of their income on traded products such as food, home appliances, furniture and clothing, they disproportionately benefit from the lower prices often associated with lower trade barriers (Grundke and Arnold, 2019 [53]; Fajgelbaum and Khandelwal, 2016 [45]; Porto, 2006[51]).…”

Mastering the transition: A synthetic literature review of trade adaptation policies

“…For consumers, trade has potential to reduce prices and enlarge the variety and quality of available goods. As lower income households spend larger shares of their incomes on tradable goods such as food, home appliances or furniture and clothing, lowering trade barriers can improve particularly the purchasing power of low-income households (Grundke and Arnold, 2019 [24]; Porto, 2006[25]; Fajgelbaum and Khandelwal, 2016 [26]). Besides price reductions, a stronger integration can give consumers access to a larger variety and higher quality of products and services (Broda and Weinstein, 2006[27]; Amiti, Redding and Weinstein, 2019 [28]).…”

“…A significant share of productivity growth in advanced economies can be attributed to these reallocation effects (Hsieh and Klenow, 2009[50]). For example, for an emerging market country like Argentina, with strong distortions in product and factor markets and low import competition due to high trade barriers, estimates suggest potential productivity gains from trade opening in the order of 50-60% (Busso, Madrigal and Pagés, 2013 [51]; Grundke and Arnold, 2019 [24]).…”