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Consumers’ Welfare and Trade Liberalization: Evidence from the Car Industry in Colombia

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  • Tovar, Jorge

Abstract

This paper examines the effects of tariff removal on consumers’ welfare focusing on the Colombian trade liberalization process and its automobile industry. Using product level data this paper calculates the post-reform gains in consumers’ welfare to be just below three thousand dollars per purchaser. Counterfactual simulations suggest that the gains achieved are due, for the most part, to increased variety rather than to price competition.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 40 (2012)
Issue (Month): 4 ()
Pages: 808-820

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Handle: RePEc:eee:wdevel:v:40:y:2012:i:4:p:808-820

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: trade liberalization; trade reforms; consumer surplus; automobiles; Latin America; Colombia;

References

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Cited by:
  1. Ana Cecília Fieler & Marcela Eslava & Daniel Xu, 2014. "Trade, Skills, and Quality Upgrading: A Theory with Evidence from Colombia," NBER Working Papers 19992, National Bureau of Economic Research, Inc.
  2. Juan Esteban Carranza & Alejandra Ximena González, 2014. "Estimación de la demanda de vehículos nuevos de los hogares colombianos entre 2001 y 2011," Borradores de Economia 824, Banco de la Republica de Colombia.
  3. Juan Esteban Carranza & Alejandra Ximena González, 2014. "Estimación de la demanda de vehículos nuevos de los hogares colombianos entre 2001 y 2011," BORRADORES DE ECONOMIA 011570, BANCO DE LA REPÚBLICA.

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