Distributive Effects of Regional Trade Agreements on the ‘Small Trading Partners’: Mercosur and the Case of Uruguay and Paraguay
AbstractIt is disputed whether trade liberalisation processes are sufficient for reducing poverty and inequality. We explore how ‘gains from trade’ have been distributed in the two minor trade partners of Mercosur, Uruguay and Paraguay, by analysing the impact of trade liberalisation on poverty and inequality through two main transmission channels: prices and income. In the case of Uruguay, trade liberalisation favoured a reduction in poverty indicators but had an almost zero effect on income inequality. In the case of Paraguay, trade liberalisation had a markedly negative impact in terms of poverty yet income distribution improved. We conclude that in the case of Mercosur, the effect of trade on poverty and income inequality varies per country and per region. In particular, we conclude that trade integration policies cannot be regarded as ‘poverty-alleviating’ per se.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal The Journal of Development Studies.
Volume (Year): 48 (2012)
Issue (Month): 12 (December)
Contact details of provider:
Web page: http://www.tandfonline.com/FJDS20
Other versions of this item:
- Borraz, Fernando & Rossi, Máximo & Ferrés, Daniel, 2011. "Distributive Effects of Regional Trade Agreements on the "Small Trading Partners": Mercosur and the case of Uruguay and Paraguay," Proceedings of the German Development Economics Conference, Berlin 2011 14, Verein für Socialpolitik, Research Committee Development Economics.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- D30 - Microeconomics - - Distribution - - - General
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marisa Bucheli & Máximo Rossi, 1994. "Distribución del ingreso en el Uruguay (1984-1992)," Documentos de Trabajo (working papers) 1094, Department of Economics - dECON.
- Antoni Estevadeordal & Junichi Goto & Raul Saez, 2000. "The New Regionalism in the Americas: The Case of MERCOSUR," IDB Publications 9378, Inter-American Development Bank.
- Guido G. Porto, 2003.
"Using survey data to assess the distributional effects of trade policy,"
Policy Research Working Paper Series
3137, The World Bank.
- Porto, Guido G., 2006. "Using survey data to assess the distributional effects of trade policy," Journal of International Economics, Elsevier, vol. 70(1), pages 140-160, September.
- Borraz Fernando & Lopez-Cordova Jose Ernesto, 2007. "Has Globalization Deepened Income Inequality in Mexico?," Global Economy Journal, De Gruyter, vol. 7(1), pages 1-57, February.
- Porto, Guido G., 2003. "Trade reforms, market access, and poverty in Argentina," Policy Research Working Paper Series 3135, The World Bank.
- Sanguinetti, Pablo & Traistaru, Iulia & Volpe Martincus, Christian, 2004.
"Economic integration and location of manufacturing activities: Evidence from MERCOSUR,"
ZEI Working Papers
B 11-2004, ZEI - Center for European Integration Studies, University of Bonn.
- Pablo Sanguinetti & Iulia Traistaru & Christian Volpe Martincus, 2004. "Economic Integration and Location of Manufacturing Activities: Evidence from Mercosur," ERSA conference papers ersa04p609, European Regional Science Association.
- repec:idb:brikps:13858 is not listed on IDEAS
- Paolo Giordano & Kun Li, 2012. "An Updated Assessment of the Trade and Poverty Nexus in Latin America," IDB Publications 79119, Inter-American Development Bank.
- Elizabeth Jane Casabianca, 2012. "Distributional effects of preferential and multilateral trade liberalization: the case of Paraguay," FIW Working Paper series 083, FIW.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.