IDEAS home Printed from https://ideas.repec.org/a/ijm/journl/v3y2010i1p118-122.html
   My bibliography  Save this article

Case Study: Impacts of trade liberalization on poverty and inequality in Argentina: policy insights from a non-parametric CGE Microsimulation analysis

Author

Listed:
  • Martín Cicowiez

    (Facultad de Ciencias Económicas, Calle 6 e/47 y 48, Oficina 516, La Plata, 1900, Argentina)

  • Carolina Díaz-Bonilla

    (World Bank Group, 1818 H Street N.W., Washington D.C., 20433, USA)

  • Eugenio Díaz-Bonilla

    (Inter-American Development Bank, 1300 New York Avenue N.W., Washington D.C., 20577, USA)

Abstract

This paper studies the economic, poverty, and income inequality impacts of both world and domestic trade reform in Argentina, with a special focus on export taxes. Argentina offers an interesting case study as the only large agricultural exporter that has, at many points in its history, applied export taxes to several of its agricultural products. The paper combines results from a global economy-wide model (World Bank?s LINKAGE model), a national CGE model, and microsimulations. The results suggest that full liberalization of world trade (including subsidies and import taxes, but not export taxes), both for agricultural and non-agricultural goods, reduces poverty and inequality in Argentina. However, if only agricultural goods are included, indicators for poverty and inequality do not improve and even deteriorate somewhat. This is particularly the case if export taxes are eliminated.

Suggested Citation

  • Martín Cicowiez & Carolina Díaz-Bonilla & Eugenio Díaz-Bonilla, 2010. "Case Study: Impacts of trade liberalization on poverty and inequality in Argentina: policy insights from a non-parametric CGE Microsimulation analysis," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 118-122.
    • Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:118-122
    as

    Download full text from publisher

    File URL: http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_34.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications - Books, The World Bank Group, number 2611, December.
    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. Atif Khan Jadoon & Ambreen Sarwar, 2020. "Is Trade Liberalisation Pro‐Poor in Pakistan? Evidence from Large‐Scale Manufacturing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(3), pages 360-394, September.
    2. Khan, Muhammad Aamir & Walmsley, Terrie & Mukhopadhyay, Kakali, 2021. "Trade liberalization and income inequality: The case for Pakistan," Journal of Asian Economics, Elsevier, vol. 74(C).
    3. Paolo Giordano & Kun Li, 2012. "An Updated Assessment of the Trade and Poverty Nexus in Latin America," IDB Publications (Working Papers) 79119, Inter-American Development Bank.
    4. Giordano, Paolo & Li, Kun, 2012. "An Updated Assessment of the Trade and Poverty Nexus in Latin America," IDB Publications (Working Papers) 4209, Inter-American Development Bank.

    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. Sébastien Jean & David Laborde & Will Martin, 2008. "Choosing Sensitive Agricultural Products in Trade Negotiations," Working Papers 2008-18, CEPII research center.
    2. Kym Anderson, 2011. "Scope for world trade reform to ease Asian poverty and inequality," STUDIES IN TRADE AND INVESTMENT, in: Trade-led growth: A sound strategy for Asia, chapter 11, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    3. Tangermann, Stefan, 2011. "Risk Management in Agriculture and the Future of the EU's Common Agricultural Policy," National Policies, Trade and Sustainable Development 320171, International Centre for Trade and Sustainable Development (ICTSD).
    4. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    5. Johan Swinnen & Alessandro Olper & Senne Vandevelde, 2021. "From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 771-788, September.
    6. Martin, Will, 2021. "Tools for measuring the full impacts of agricultural interventions," IFPRI-MCC technical papers 2, International Food Policy Research Institute (IFPRI).
    7. Balie, Jean & Strutt, Anna & Nelgen, Signe & Narayanan, 2018. "Infrastructure investments for improved market access in subSaharan Africa: A CGE analysis," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(2), June.
    8. Lloyd, Peter J. & Croser, Johanna L. & Anderson, Kym, 2009. "Global distortions to agricultural markets : new indicators of trade and welfare impacts, 1955 to 2007," Policy Research Working Paper Series 4865, The World Bank.
    9. Kamel Louhichi & Aymeric Ricome & Sergio Gomez y Paloma, 2022. "Impacts of agricultural taxation in Sub‐Saharan Africa: Insights from agricultural produce cess in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 53(5), pages 671-686, September.
    10. Kym Anderson & Ernesto Valenzuela, 2021. "What impact are subsidies and trade barriers abroad having on Australasian and Brazilian agriculture?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 265-290, April.
    11. Kym Anderson & James Giesecke & Ernesto Valenzuela, 2010. "How would global trade liberalization affect rural and regional incomes in Australia?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 389-406, October.
    12. Magrini, Emiliano & Morales-Opazo, Cristian & Balie, Jean, 2014. "Supply response along the value chain in selected SSA countries: the case of grains," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197193, International Agricultural Trade Research Consortium.
    13. Johnson, Michael & Dorosh, Paul, 2015. "Optimal Tariffs with Smuggling: A Spatial Analysis of Nigerian Rice Policy Options," 2015 Conference, August 9-14, 2015, Milan, Italy 211816, International Association of Agricultural Economists.
    14. Calum Brown & Dave Murray-Rust & Jasper van Vliet & Shah Jamal Alam & Peter H Verburg & Mark D Rounsevell, 2014. "Experiments in Globalisation, Food Security and Land Use Decision Making," PLOS ONE, Public Library of Science, vol. 9(12), pages 1-24, December.
    15. Garrone, Maria & Emmers, Dorien & Olper, Alessandro & Swinnen, Johan, 2019. "Jobs and agricultural policy: Impact of the common agricultural policy on EU agricultural employment," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    16. Yuan Li & Bo Xiong & John C Beghin, 2017. "The Political Economy of Food Standard Determination: International Evidence from Maximum Residue Limits," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 14, pages 239-267, World Scientific Publishing Co. Pte. Ltd..
    17. Kym Anderson, 2021. "Food policy in a more volatile climate and trade environment," Departmental Working Papers 2021-25, The Australian National University, Arndt-Corden Department of Economics.
    18. Anderson, Kym & Valenzuela, Ernesto & van der Mensbrugghe, Dominique, 2009. "Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model," Agricultural Distortions Working Paper Series 52785, World Bank.
    19. Poczta-Wajda, Agnieszka, 2014. "Assistance To Agriculture In Countries Of A Different Development Level And Trends In World Trade With Agricultural Products," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2014(6).
    20. Johanna L. Croser & Peter J. Lloyd & Kym Anderson, 2010. "How Do Agricultural Policy Restrictions on Global Trade and Welfare Differ Across Commodities?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 698-712.

    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:ijm:journl:v:3:y:2010:i:1:p:118-122. 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: Jinjing Li (email available below). General contact details of provider: http://www.microsimulation.org/ijm/ .

    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.