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

Author

Listed:
  • Francisco Costa

    (Getulio Vargas Foundation, FGV/EPGE - Escola Brasileira de Economia e Financas, Rio de Janeiro, Brazil)

  • Jason Garred

    (Department of Economics, University of Ottawa)

  • João Paulo Pessoa

    (Sao Paulo School of Economics, Brazil)

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

  • Francisco Costa & Jason Garred & João Paulo Pessoa, 2016. "Winners and Losers from a Commodities-for-Manufactures Trade Boom," Working Papers 1603E, University of Ottawa, Department of Economics.
    • Handle: RePEc:ott:wpaper:1603e
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Trade; China; Brazil; commodities; labour markets; informality;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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