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Case Study: The growth and poverty impacts of trade liberalization in Senegal

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Author Info

  • John Cockburn

    ()
    (Université Laval, Pavillon J-A DeSève, Quebec, Canada, G1V 0A6;)

  • Erwin Corong

    ()
    (Monash University, Centre of Policy Studies, Clayton, Victoria, Australia, 3168)

  • Bernard Decaluwé

    ()
    (Université Laval, Pavillon J-A DeSève, Quebec, Canada, G1V 0A6;)

  • Ismaël Fofana

    ()
    (Université Laval, Pavillon J-A DeSève, Quebec, Canada, G1V 0A6)

  • Véronique Robichaud

    ()
    (Université Laval, Pavillon J-A DeSève, Quebec, Canada, G1V 0A6;)

Abstract

Most empirical studies find relatively small welfare and poverty impacts of trade liberalization, mainly as a result of the static framework generally used, in which welfare gains and poverty impacts result solely from a short term reallocation of resources. Using Senegal as a case study, we illustrate the results of integrating the growth and productivity gain effects of trade liberalization with the resulting long-run impacts on welfare and poverty. We show that the distributional impacts between poor and non-poor depend upon the specific nature of the trade liberalization policies adopted; and the characteristics of the economy in which it occurs. In the Senegalese case, the predicted principal beneficiaries of trade liberalization are urban and higher skill workers.

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File URL: http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_32.pdf
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Bibliographic Info

Article provided by Interational Microsimulation Association in its journal International Journal of Microsimulation.

Volume (Year): 3 (2010)
Issue (Month): 1 ()
Pages: 109-113

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Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:109-113

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Web page: http://ima.natsem.canberra.edu.au/index.htm

Related research

Keywords: trade liberalization; CGE; productivity gains; growth income curve;

References

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  1. Baldwin, Richard & Robert-Nicoud, Frédéric, 2005. "Trade and Growth with Heterogeneous Firms," CEPR Discussion Papers 4965, C.E.P.R. Discussion Papers.
  2. Yeaple, Stephen & Helpman, Elhanan & Melitz, Marc, 2004. "Export versus FDI with Heterogeneous Firms," Scholarly Articles 3229098, Harvard University Department of Economics.
  3. Kim, Euysung, 2000. "Trade liberalization and productivity growth in Korean manufacturing industries: price protection, market power, and scale efficiency," Journal of Development Economics, Elsevier, vol. 62(1), pages 55-83, June.
  4. John Cockburn & Erwin Corong & Bernard Decaluwé & Ismaël Fofana & Véronique Robichaud, 2010. "The Gender and Poverty Impacts of Trade Liberalization in Senegal," Cahiers de recherche 1013, CIRPEE.
  5. Ravallion, Martin & Lokshin, Michael, 2004. "Gainers and losers from trade reform in Morocco," Policy Research Working Paper Series 3368, The World Bank.
  6. Richard Baldwin, 2005. "Heterogeneous Firms and Trade: Testable and Untestable Properties of the Melitz Model," NBER Working Papers 11471, National Bureau of Economic Research, Inc.
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