Trade liberalization and the evolution of skill earnings differentials in Brazil

Rio de Janeiro

The evolution of TFP in Latin America

Due to widespread government intervention and import-substitution industrialization, there has been a general perception that Latin America has always been less productive than the leading economies. In this paper, however, we show that until the mid-seventies Latin America had high productivity levels relative to the US and other regions. Moreover, total factor productivity in Latin America increased relative to the US during this period, declining only in the subsequent years.

The evolution of TFP in Latin America: high productivity when distortions were high?

Due to widespread government intervention and import-substitution industrialization, there has been a general presumption that Latin America has been much less productive than the leading economies in the last decades. In this paper, however, we show that until the late seventies Latin America had high total factor productivity (TFP) levels relative to the US and other regions. It is only after the late seventies that we observe a fast decrease of relative TFP in Latin America. Results are robust to the use of diferent methodologies and data sources.

Trade liberalization and the evolution of skill earnings differentials in Brazil

Rio de Janeiro

The evolution of international output differences (1960-2000): From factors to productivity

This article presents a group of exercises of level and growth decomposition of output per worker using cross-country data from 1960 to 2000. It is shown that at least until 1975 factors of production (capital and education) were the main source of output dispersion across economies and that productivity variance was considerably smaller than in late years. Only after this date the prominence of productivity started to show up in the data, as the majority of the literature has found. The growth decomposition exercises showed that the reversal of relative importance of productivity vis-a-vis factors is explained by the very good (bad) performance of productivity of fast (slow) growing economies. Although growth in the period, on average, is mostly due to factors accumulation, its variance is explained by productivity.

Evolution of corporate governance of privately controlled brazilian companies

Mercados financeiros e finanças corporativas

On the evolution of TFP in Latin America

Due to several policy distortions, including import-substitution industrialization, widespread government intervention and both domestic and international competitive barriers, there has been a general presumption that Latin America has been much less productive than the leading economies in the last decades. In this paper we show, however, that until the late seventies Latin American countries had high productivity levels relative to the United States. It is only after the late seventies that we observe a fast decrease of relative TFP in Latin America. We also show that the inclusion of human capital in the production function makes a crucial diference in the TFP calculations for Latin America.

On the evolution of TFP in Latin America

Due to several policy distortions, including import-substitution industrialization, widespread government intervention and both domestic and international competitive barriers, there has been a general presumption that Latin America has been much less productive than the leading economies in the last decades. In this paper we show, however, that until the late seventies Latin American countries had high productivity levels relative to the United States. It is only after the late seventies that we observe a fast decrease of relative TFP in Latin America. We also show that the inclusion of human capital in the production function makes a crucial difference in the TFP calculations for Latin America.

Trade liberalization and the evolution of skill earnings differentials in Brazil

From 1988 to 1995, when trade liberalization was implemented in Brazil, relative earnings of skilled workers decreased. In this paper, we investigate the role of trade liberalization in explaining these relative earnings movements, by checking all the steps predicted by the HeckscherOhlin- style trade transmission mechanism. We find that: i) employment shifted from skilled to unskilled intensive sectors, and each Sector increased its relative share of skilled labor; ii) relative prices fell in skill intensive sectors; iii) tariff changes across sectors were not related to skill intensities, but the pass-through from tariffs to prices was stronger in skill intensive sectors; iv) the decline in skilled eamings differentials mandated by the price variation predicted by trade is very elose to the observed one. The results are compatible with trade liberalization, accounting for the observed rei ative eamings changes in Brazil.

The evolution of international output differences (1960-2000) : from factor to productivity

This article presents a group of exercises of leveI and growth decomposition of output per worker using cross-collntry data from 1960 to :2000. It is shown that at least llntil 197.5 factors of production (capital anel education) ",ere the main source of output dispersion across ecoIlomies and that productivity variance was considerably srnaller than in late years. Qnly after this date the prominence of productivity started to sho\\' up in the data. as the majority of the litcrature has found. The gro\\'th decomposition exercises showecl that t he reversal of relative irnportance of proeluctivity vis-a-\'is factors is explainecl by the very good (bad) performance of procluctivity of fast (slow) growing cconomies. Although growth in the pcriod, on avcragc. is mostly clue to factors accumulation. its variance is explained by productivity.