Joaquim Ramos Silva

Wage differentials in Brazil: Tourism vs. other service sectors

Abstract This study aims to analyse the wage differentials between the Brazilian tourism and non-tourism service sectors. The statistics originate from micro-data for the year of 2012, published by the National Household Sample Survey, and released by the Brazilian Institute of Geography and Statistics. Using an econometric model, based on an updated version of the Oaxaca-Blinder decomposition, it was possible to measure wage differentials between workers in both sectors. We report that returns in the non-tourism sector were higher than that of the tourism sector, and also conclude that in the Brazilian service sector, the wage gap is derived from differences in worker characteristics, to the detriment of the tourism industry. Moreover, variables such as schooling and age proved to have weight for the explanation of the wage differential, the latter being taken as a proxy of experience in the labour market.

Empirical investigation of the effects of industry type and firm size on export barriers

This study aims to explore the importance of export barriers and to achieve this by comparing different industry types and firm sizes. We performed a cross-sectional study of 529 Portuguese export firms drawn from the database held by a Portuguese Industrial Association – Business Confederation. From multivariate analysis of variance and the Tukey’s HSD (Honestly Significant Difference) test, we conclude that the more important export barriers mentioned by the firms proved more external than internal. Our results also show that the service and retail trade sectors were the sectors reporting the greatest peculiarities regarding export barriers. Thus, we identify an “industry effect†as regards export barriers even while our findings do not indicate any “size effect†. Knowing the industry-specific export barriers enables companies not only to better coordinate and perform export processes but also to better anticipate the behaviour of their competitors. Other practical and theoretical implications will also be presented.

Causes and Effects of Foreign Direct Investment in South Asia

South Asia is at the centre of globalization. Nevertheless, there are many institutional barriers that constrain the flow of goods, investment and knowledge. The aim of this chapter is to improve the understanding of Foreign Direct Investment (FDI) in South Asia, on the one hand by analysing the literature and on the other hand by the formulation and estimation of an FDI model for South Asia based on factors that have major influence. Investment flows within South Asia have been historically lower than those connecting the region with the developed world. The approach is to understand the causes and effects of FDI in South Asia and to inform policies that can promote cooperation and development in the region. First, we propose some thoughts and questions based on the facts of FDI in South Asia. Then, a model of understanding is formulated and estimated to derive consistent past and future explanations for South Asia investment flows and the causes that influence them. Finally, it is concluded that institutional factors, mostly related to regional conflicts, are the main constraints that influence cooperation and development in the region.