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Submitted by Francisco Carneiro on
Shanta, Great to hear that you are still working on CGE models and doing this review, which should provide interesting findings and insights for researchers and practitioners. I have contributed a chapter to a book edited by Rob Vos, Enrique Ganuza, Sam Morley, and Sherman Robinson (entitled Who Gains from Free Trade? Export-led growth, inequality and poverty in Latin America, Routledge Studies in Development Economics, New York, 2006) that used a CGE model to investigate the impact of trade openness on employment, poverty and inequality in Brazil (my chapter was entitled “Brazil – the impact of trade openness on employment, poverty and inequality” and was co-authored by Jorge Arbache). The book is a collection of articles addressing a similar question for a number of Latin American and Caribbean countries and presents the result of research funded by a joint UNDP-ECLAC research program that involved prominent think-tanks in several countries (e.g., IPEA in Brazil). So I think it is a good example for your review of how CGE models have been used in policy discussion. I have also published a paper with Jorge Arbache that used the CGE modeling approach in World Development that is frequently cited in academic papers dealing with trade openness in Brazil. The paper shows that trade liberalization in Brazil has contributed to improve economic welfare by means of greater output, lower domestic prices, and higher labor demand. However, one important finding of the paper was that the benefits of this economic improvement in Brazil have often been appropriated by the most skilled workers in the most trade-oriented sectors, contradicting the predictions of the Heckscher-Ohlin and Stolper-Samuelson theorems. The complete reference for this paper is: Carneiro, Francisco G. and Jorge S. Arbache (2003), The Impacts of Trade on the Brazilian Labor Market: A CGE Model Approach, World Development 31, 1581-1595. Good luck with this interesting work. Best, Chico.