Trade liberalisation, agricultural productivity and poverty in the Mediterranean region
AbstractA widely held view in the economic literature is that productivity growth is an important pathway through which trade liberalisation may alleviate poverty. This paper explores the link between trade openness, agricultural productivity growth and poverty reduction in a panel of Mediterranean countries. Technical efficiency scores and total factor productivity indexes are computed using the latent class stochastic frontier model to account for cross-country heterogeneity in farming production technologies. The relevance of agricultural productivity gains for poverty reduction is investigated through joint estimation of real per capita GDP growth and inequality changes in a dynamic panel setting. The findings illustrate the positive effects of openness on farming efficiency and productivity and give strong support to the view that agricultural productivity growth is a channel for poverty alleviation. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email firstname.lastname@example.org, Oxford University Press.
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Bibliographic InfoArticle provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.
Volume (Year): 36 (2009)
Issue (Month): 1 (March)
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- Nadia Belhaj Hassine & Magda Kandil, 2008. "Trade Liberalization, Agricultural Productivity and Poverty in the Mediterranean Region," Working Papers 415, Economic Research Forum, revised Jul 2008.
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- Kazukauskas, Andrius & Newman, Carol F. & Thorne, Fiona S., 2010. "Analysing the Effect of Decoupling on Agricultural Production: Evidence from Irish Dairy Farms using the Olley and Pakes Approach," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(3).
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