Globalisation and Poverty in Latin America: Some Channels and Some Evidence
AbstractThis paper provides an overview of the main mechanisms through which globalisation can affect poverty and household welfare in Latin America and presents supporting evidence from different case studies in the region. One case study explores the impacts of agricultural trade liberalisation in world markets on poverty in Argentina, with an emphasis on labour income effects via real wages. The second case study examines the impacts of CAFTA on net producers and net consumers among the indigenous population in Guatemala. The analysis explores short-run impacts as well as medium-run impacts as households adjust farm decisions. Finally, a last exercise is set up to study the role of agricultural liberalisation on wages, employment and unemployment when there are frictions in labour markets. These case studies show that the impacts of trade on developing countries are heterogeneous. In Argentina, there are gains from liberalisation of world agriculture and higher food prices. In Guatemala, instead, the indigenous population would benefit from lower food prices. It is clear that household adjustments and complementary factors are fundamental ingredients of any reasonable evaluation of the welfare impacts of trade reforms. Copyright 2007 The Author Journal compilation 2007 Blackwell Publishing Ltd .
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal World Economy.
Volume (Year): 30 (2007)
Issue (Month): 9 (09)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920
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- Julian Emami Namini, 2009. "International Trade with Firm Heterogeneity in Factor Shares," Tinbergen Institute Discussion Papers 09-020/1, Tinbergen Institute.
- Szekely, Miguel & Samano, Claudia, 2012. "Did Trade Openness Affect Income Distribution in Latin America? Evidence for the years 1980.2010," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Emami Namini, Julian, 2014. "The short and long-run impact of globalization if firms differ in factor input ratios," Journal of Economic Dynamics and Control, Elsevier, vol. 38(C), pages 37-64.
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- Nadia Belhaj Hassine & Véronique Robichaud & Bernard Decaluwé, 2010.
"Agricultural Trade Liberalization, Productivity Gain and Poverty Alleviation: a General Equilibrium Analysis,"
Cahiers de recherche
- Nadia Belhaj Hassine & Véronique Robichaud & Bernard Decaluwe, 2010. "Agricultural Trade, Liberalization, Productivity Gain, and Poverty Alleviation: a General Equilibrium Analysis," Working Papers MPIA 2010-09, PEP-MPIA.
- Nadia Belhaj Hassine & Veronique Robichaud & Bernard Decaluwé, 2010. "Agricultural Trade Liberalization, Productivity Gain And Poverty Alleviation: A General Equilibrium Analysis," Working Papers 519, Economic Research Forum, revised May 2010.
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