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A Survey of Findings on the Poverty Impacts of Agricultural Trade Liberalization

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  • Thomas W. Hertel

    ()
    (Center for Global Trade Analysis, Purdue University, Indiana, USA)

Abstract

The purpose of this survey is to review the available empirical evidence on the impacts of agricultural trade liberalization on poverty – considering both the impact of domestic and international liberalization. Since trade liberalization is generally an economywide phenomenon, with tariff cuts occurring across a wide range of commodities, we do not restrict ourselves to episodes where only agricultural trade was liberalized, although emphasis in this survey is given to agricultural trade policies. Furthermore, given the difficulty of isolating the effects of trade policies alone, we will also consider the impact of other types of external shocks which have the effect of changing the relative prices of tradeable and non-tradeable goods. By examining the way in which households adjust to such external shocks, we can learn a great deal about how they would respond to sharp reductions in tariffs, or significant changes in a country’s international terms of trade engendered by multilateral trade liberalization.

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Bibliographic Info

Article provided by Food and Agriculture Organization of the United Nations in its journal The Electronic Journal of Agricultural and Development Economics.

Volume (Year): 3 (2006)
Issue (Month): 1 ()
Pages: 1-26

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Handle: RePEc:fao:tejade:v:3:y:2006:i:1:p:1-26

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Keywords: Poverty; rural development; agriculture;

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References

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  1. Thomas Hertel & Jeffrey Reimer, 2005. "Predicting the poverty impacts of trade reform," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(4), pages 377-405.
  2. Ravallion, Martin & Lokshin, Michael, 2004. "Gainers and losers from trade reform in Morocco," Policy Research Working Paper Series 3368, The World Bank.
  3. World Bank, 2003. "Global Economic Prospects 2004 : Realizing the Development Promise of the Doha Agenda," World Bank Publications, The World Bank, number 14782, March.
  4. C. Arndt & H. T. Jensen & S. Robinson & F. Tarp, 2000. "Marketing Margins and Agricultural Technology in Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 37(1), pages 121-137.
  5. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
  6. Eric V. Edmonds, 2007. "Child Labor," NBER Working Papers 12926, National Bureau of Economic Research, Inc.
  7. Jed Friedman & James Levinsohn, 2001. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A 'Rapid Response' Methodology," Working Papers 482, Research Seminar in International Economics, University of Michigan.
  8. James P. Smith & Duncan Thomas & Elizabeth Frankenberg & Kathleen Beegle, 2000. "Wages, Employment and Economic Shocks: Evidence from Indonesia," Working Papers 00-07, RAND Corporation Publications Department.
  9. Yih-Chyi Chuang & Chi-Mei Lin, 1999. "Foreign direct investment, R&D and spillover efficiency: Evidence from Taiwan's manufacturing firms," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 117-137.
  10. Ianchovichina, Elena & Binkley, James & Hertel, Thomas, 2000. "Procompetitive Effects of Foreign Competition on Domestic Markups," Review of International Economics, Wiley Blackwell, vol. 8(1), pages 134-48, February.
  11. Minot, Nicholas W, 1998. "Distributional and Nutritional Impact of Devaluation in Rwanda," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 379-402, January.
  12. Terrie L. Walmsley & Thomas W. Hertel & Elena Ianchovichina, 2006. "Assessing The Impact Of China'S Wto Accession On Investment," Pacific Economic Review, Wiley Blackwell, vol. 11(3), pages 315-339, October.
  13. Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports 114, International Food Policy Research Institute (IFPRI).
  14. Deininger, Klaus & Olinto, Pedro, 2000. "Asset distribution, inequality, and growth," Policy Research Working Paper Series 2375, The World Bank.
  15. Thomas W. Hertel & Maros Ivanic & Paul V. Preckel & John A.L. Cranfield & Will Martin, 2003. "Short- versus Long-Run Implications of Trade Liberalization for Poverty in Three Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1299-1306.
  16. Itakura, Ken & Hertel, Thomas & Jeff Reimer, 2003. "The Contribution of Productivity Linkages to the General Equilibrium Analysis of Free Trade Agreements," GTAP Working Papers 1193, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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Cited by:
  1. 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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