Paula Bustos 

Research overview

My research can be described as empirical investigations in economic development guided by international trade theory. My first line of research studied the effects of a regional free trade agreement between Argentina and Brazil. I showed that it induced firms to export and innovate but reduced the demand for unskilled labor in the manufacturing sector.  A second line of research studies the effect of the adoption of new agricultural technologies, such as GM crops, on economic development in Brazil. Unskilled workers lost their jobs in agriculture but reallocated to the local manufacturing sector. This inflow if unskilled workers reduced local innovation and growth. However, agricultural productivity growth also led to savings and capital flows towards urban regions where it financed the expansion of the manufacturing and service sectors.  A recent line of research studies the effects of climate change on labor and capital allocation across sectors and regions in Brazil. 

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