employment paper 2002 44 external liberalization macroeconomic instability and the labour market in brazil matias vernengo assistant professor kalamazoo college michigan illinois sector international office geneva 2 foreword this is one of case studies prepared within framework research project on global economic integration policy carried out by department are designed to provide detailed empirical assessment effects growth manufactured trade induced manufacturing wages a carefully selected set countries while there widespread concern about they remain inadequately unde rstood exists large literature experience industrialized but controversies abound developing extremely limited given backdrop expected make substantial contribution our understanding changes being engendered globalization subject much current interest organizations national makers academic community civil society argues that which occurred only early 1990s led rather puzzling developments it failed stimulate exports substantially boosted imports