Is there any relationship between trade liberalization and social protection in Brazil?
DOI:
https://doi.org/10.21527/2237-6453.2025.62.15340Keywords:
Trade liberalization, economic growth, social protectionAbstract
In a developing country like Brazil, it is necessary to analyze the economic and social aspects that improve the quality of life of those living in vulnerable situations. This study aims to analyze the causal relationship between social protection and trade liberalization in Brazil. For this, data from Social Assistance, BRASIL/MDIC/ComexStat and the World Bank are used for the years 2004 to 2019, where 67 low and middle income countries are analyzed through a dynamic panel. Among the results obtained, it was possible to verify that the population variable is directly related to higher spending on social protection, showing that a larger number of people in unequal countries have a greater need for spending on social protection. It was also possible to verify through the dynamic model that imports are associated with increased spending on social protection. As for trade liberalization, the theoretical review indicates that this may be a factor that in growth can bring harm to countries with greater income inequalities, however, the results in this study were not conclusive on the impact on spending on social protection. In conclusion, in order to reduce income inequality and poverty through social protection, it is necessary to expand social policies that fit the singularities of countries.
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