IDEAS home Printed from https://ideas.repec.org/a/eee/jpolmo/v30y2008i6p1057-1060.html
   My bibliography  Save this article

Trade liberalisation and household welfare in Nepal

Author

Listed:
  • Acharya, Sanjaya
  • Cohen, Solomon

Abstract

We examine some of the most recent works on general equilibrium models that measured the impact of trade liberalisation on household welfare. We modify the standard neo-classical model and apply it to a typical South Asian village economy which is still lagging in studies of policy modelling. We conclude that the combination of import and export liberalisations generates higher growth but the distribution pattern does not become pro-poor. Liberalisation under a flexible exchange rate regime when compared to the fixed regime can work negatively since the currency may appreciate much and eliminate the comparative advantages. We also find that a piece by piece external reform gives better economic results than implementing all external reforms together.

Suggested Citation

  • Acharya, Sanjaya & Cohen, Solomon, 2008. "Trade liberalisation and household welfare in Nepal," Journal of Policy Modeling, Elsevier, vol. 30(6), pages 1057-1060.
    • Handle: RePEc:eee:jpolmo:v:30:y:2008:i:6:p:1057-1060
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0161-8938(08)00006-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Naude, Willem & Coetzee, Rian, 2004. "Globalisation and inequality in South Africa: modelling the labour market transmission," Journal of Policy Modeling, Elsevier, vol. 26(8-9), pages 911-925, December.
    2. Dorothée Boccanfuso & Luc Savard, 2005. "Impact Analysis of the Liberalization of Groundnut Production in Senegal: A Multi-household Computable General Equilibrium Model," Cahiers de recherche 05-12, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    3. Field, Alfred J. & Wongwatanasin, Umaporn, 2007. "Tax policies' impact on output, trade and income in Thailand," Journal of Policy Modeling, Elsevier, vol. 29(3), pages 361-380.
    4. Adams, Philip D., 2005. "Interpretation of results from CGE models such as GTAP," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 941-959, November.
    5. Margaret Chitiga & Tonia Kandiero & Ramos Mabugu, 2005. "Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe," Working Papers MPIA 2005-01, PEP-MPIA.
    6. Francois, Joseph & Rojas-Romagosa, Hugo, 2005. "Equity, welfare, and the setting of trade policy in general equilibrium," Policy Research Working Paper Series 3731, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. John Gilbert & Nilanjan Banik, 2012. "Socio-economic impacts of regional transport infrastructure in South Asia," Chapters, in: Biswa Nath Bhattacharyay & Masahiro Kawai & Rajat M. Nag (ed.), Infrastructure for Asian Connectivity, chapter 5, pages 139-163, Edward Elgar Publishing.
    2. Manuel CANTAVELLA-JORDA & Sheila Amin GUTIERREZ DE PIÑERES, 2012. "A Cross-national Panel Study of Devaluations on Disaggregated Export Sectors: A Case for Sector Specific Policies," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 12(2).
    3. John Gilbert & Nilanjan Banik, 2010. "Socioeconomic Impacts of Cross- Border Transport Infrastructure Development in South Asia," Development Economics Working Papers 21803, East Asian Bureau of Economic Research.
    4. Dayal Talukder, 2014. "Agricultural Trade Liberalization and Poverty in Rural Bangladesh," Poverty & Public Policy, John Wiley & Sons, vol. 6(3), pages 282-307, September.
    5. Stankov, Petar & Vasilev, Aleksandar, 2019. "Business reform outcomes: Why so different?," Journal of Policy Modeling, Elsevier, vol. 41(6), pages 1109-1127.
    6. John Gilbert, 2008. "Trade Policy, Poverty, and Income Distribution in CGE Models: An Application to SAFTA," Working Papers 2008-02, Utah State University, Department of Economics, revised 19 Dec 2008.
    7. Acharya Sanjaya & Signorelli Marcello & Vojinovic Borut & Oplotnik Žan Jan, 2013. "Alternative Approach to Economic Restructuring to Benefit the Poor – Sam Multipliers Analysis as Alternative Approach," Scientific Annals of Economics and Business, Sciendo, vol. 60(1), pages 182-201, July.
    8. Acharya, Sanjaya, 2011. "Making unilateral trade liberalisation beneficial to the poor," Socio-Economic Planning Sciences, Elsevier, vol. 45(2), pages 60-71, June.
    9. Ziaur Rahman, 2014. "The impact of trade liberalization on poverty reduction in Bangladesh: A computable general equilibrium (CGE) analysis," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 4(4), pages 240-253, April.
    10. Sanjaya Acharya & Mohamed Ileas Mia, 2020. "Inflation, Growth, and Distribution Nexus in Post-Transition and Emerging Economies of South Asia," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 368-383, September.
    11. Acharya, Sanjaya & Hölscher, Jens & Perugini, Cristiano, 2012. "Trade liberalisation and inequalities in Nepal: A CGE analysis," Economic Modelling, Elsevier, vol. 29(6), pages 2543-2557.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Milton Ayoki, 2013. "Trade Policies and Poverty in Uganda: A Computable General Equilibrium Micro Simulation Analysis," Working Papers 258, African Economic Research Consortium, Research Department.
    2. Berrittella, Maria, 2012. "Modelling the labour market of minority ethnic groups," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 389-402.
    3. Ayoki, Milton, 2013. "Pursuing a pro-poor trade liberalization agenda: Regionalism, multilateralism and poverty in Uganda," MPRA Paper 83547, University Library of Munich, Germany.
    4. Ayoki, Milton, 2013. "Computable General Equilibrium Micro Simulation Analysis of the Impact of Trade Policies on Poverty in Uganda," MPRA Paper 78876, University Library of Munich, Germany.
    5. KM Shivakumar & S.Kombairaju & M.Chandrasekaran, 2007. "Trade Policy Analysis of Edible Oil Imports of India under CGE framework," EcoMod2007 23900083, EcoMod.
    6. Buffie, Edward F. & Atolia, Manoj, 2012. "Trade, growth, and poverty in Zambia: Insights from a dynamic GE model," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 211-229.
    7. Kebede, Sindu & Fekadu, Belay & Aredo, Dejene, 2011. "Trade Liberalization and Poverty: A Macro-Micro Analysis in Ethiopia," Proceedings of the German Development Economics Conference, Berlin 2011 44, Verein für Socialpolitik, Research Committee Development Economics.
    8. Beckman, Jayson & Burfisher, Mary & Mitchell, Lorraine & Arita, Shawn, 2021. "Hidden obstacles to trade: The case of the EU’s Ban on beef hormones," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1332-1343.
    9. Fugazza, Marco & Maur, Jean-Christophe, 2008. "Non-tariff barriers in CGE models: How useful for policy?," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 475-490.
    10. Nong, Duy & Nguyen, Duong Binh & Nguyen, Trung H. & Wang, Can & Siriwardana, Mahinda, 2020. "A stronger energy strategy for a new era of economic development in Vietnam: A quantitative assessment," Energy Policy, Elsevier, vol. 144(C).
    11. Zhai, Fan, 2007. "Armington Meets Melitz: Introducing Firm Heterogeneity in Global CGE Model of Trade," Conference papers 331646, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Curzel, Rosana & Silber, Simão Davi & Guilhoto, Joaquim José Martins, 2007. "Argentina, Brasil e Uruguai: um estudo dos impactos regionais da ALCA [Argentina, Brazil and Uruguay: a study of the regional impacts of ALCA]," MPRA Paper 54502, University Library of Munich, Germany.
    13. Julius Mukarati & Itumeleng P. Mongale & Godswill Makombe, 2020. "Land redistribution and the South African economy," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(1), pages 46-54.
    14. Ramos Mabugu & Margaret Chitiga, 2009. "Liberalising Trade In South Africa: A Survey Of Computable General Equilibrium Studies," South African Journal of Economics, Economic Society of South Africa, vol. 77(3), pages 445-464, September.
    15. Leone Walters & Heinrich R. Bohlmann & Matthew W. Clance, 2016. "The Impact of the COMESA-EAC-SADC Tripartite Free Trade Agreement on the South African Economy," Working Papers 201669, University of Pretoria, Department of Economics.
    16. Francois, Joseph & Rojas-Romagosa, Hugo, 2011. "Household inequality, social welfare, and trade," Journal of Development Economics, Elsevier, vol. 96(2), pages 422-431, November.
    17. Benjasak, Chonlakan & Bhattarai, Keshab, 2017. "General Equilibrium Impacts VAT and Corporate Tax in Thailand," MPRA Paper 88816, University Library of Munich, Germany, revised 01 Jul 2018.
    18. Conway, Patrick, 2009. "Trade liberalization in textiles: Policy effects in an import-competing industry," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 664-680, September.
    19. N.M. Nkang & B.T. Omonona & S.A. Yusuf & O.A. Oni, 2013. "Simulating the Impact of Exogenous Food Price Shock on Agriculture and the Poor in Nigeria: Results from a Computable General Equilibrium Model," Economic Analysis and Policy, Elsevier, vol. 43(1), pages 79-94, March.
    20. George Verikios & Kevin Hanslow, 2009. "The Long-run Effects of Structural Change and the Treatment of International Capital Accumulation, Mobility and Ownership," Global Economic Review, Taylor & Francis Journals, vol. 38(3), pages 229-250.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:30:y:2008:i:6:p:1057-1060. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505735 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.