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Trade Liberalization and Mortality Rates: Evidence of Pro-Cyclical Mortality From Brazil
Vinicius Curti Cícero1, Lucas Cardoso Corrêa Dias2, Sammy Zahran1,3
1Department of Economics, Colorado State University, Fort Collins, Colorado, USA.
Health Economics
|November 13, 2024
Summary
Trade liberalization reduced mortality rates in Brazil, especially in regions hit hardest by economic shocks. Improved healthcare and fewer accidents explain these public health gains.
Area of Science:
- Public Health
- Health Economics
- Economic History
Background:
- Trade liberalization reforms in the 1990s significantly impacted economies globally.
- Understanding the public health consequences of economic policy is crucial.
Purpose of the Study:
- To analyze the relationship between trade-induced economic shocks and all-cause mortality rates in Brazil.
- To investigate the mechanisms linking trade policy to mortality changes.
Main Methods:
- Examined mortality data across Brazilian regions with varying exposure to trade liberalization.
- Utilized falsification tests using causes of death unrelated to economic activity.
- Analyzed changes in healthcare infrastructure and accident rates.
Main Results:
- Regions with higher exposure to trade liberalization (tariff reductions) showed significant declines in all-cause mortality.
- Mortality reductions were observed across all sexes, age groups, and for both internal and external causes.
- Healthcare infrastructure, particularly capital-intensive care and diagnostic technology, expanded in affected regions.
- A decrease in transport and non-transport-related accidents contributed to lower mortality.
Conclusions:
- Trade policy has a significant, underappreciated impact on public health outcomes.
- Economic shocks from trade liberalization can lead to improved health through enhanced healthcare and reduced accidents.
- Pro-cyclical mortality is a demonstrable consequence of trade policy, with positive health implications.
Keywords:
capital‐intensity of carehealth outcomeshealthcare infrastructurelocal economic shockspro‐cyclical mortalitytrade liberalizationMore Related Videos
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