Impacts on the Brazilian economy caused by the commercial openness occurred in the 90’s in the textile and clothing sector: a general equilibrium study

Authors

  • Andressa Rodrigues Pavão USP
  • Silvia Kanadani Campos USP

DOI:

https://doi.org/10.5380/re.v36i2.22997

Keywords:

tariffs, textile, general equilibrium model

Abstract

The objective of this work was to analyze the effect of a 20% collapse ofprices in textile and clothing products, in the period between 1996 and 2007, parallelto the increasing of the tariffs of importation of 17,8% in clothing products (policy implemented in 2007). A general equilibrium model was used based in data fromthe input-product matrix of 1996 (IBGE). It was observed that the textile industrywas the most directly punished, especially in the production and generation ofemployments. The clothes industry has lived a reduction of costs of its principalraw material, which benefitted its production in the short-run. Although in theshort-run the effects for Brazilian economy have been in general beneficial, withthe increasing of the employment and the consumption of the families, in the longrunthere was a fall of the wages and the consumption of the same ones. Besides,there was fall of real GDP in the short-run as in the long-run.

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How to Cite

Pavão, A. R., & Campos, S. K. (2010). Impacts on the Brazilian economy caused by the commercial openness occurred in the 90’s in the textile and clothing sector: a general equilibrium study. Revista De Economia, 36(2). https://doi.org/10.5380/re.v36i2.22997

Issue

Vol. 36 No. 2 (2010)

Section

Artigos

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