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Trade liberalization and poverty - lessons from Asia and Africa

In: FUTURE TRADE RESEARCH AREAS THAT MATTER TO DEVELOPING COUNTRY POLICYMAKERS

Author

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  • John Cockburn
  • Bernard Decaluwe
  • Veronique Robichaud

Abstract

We bring together the lessons drawn from the computable general equilibrium (CGE) analysis of the impacts of trade liberalization on poverty in seven Asian and African countries: Bangladesh, Benin, India, Nepal, Pakistan, the Philippines and Senegal. We compare and contrast the results in these countries, explaining where there are similarities and why there are differences. Particular attention is paid to identifying how the specific characteristics of each country – initial tariff structure, trade patterns, relative factor endowments, production patterns, income sources and consumption patterns of the poor, etc. – modify the results. Conclusions are then drawn with respect to the key factors in managing trade liberalization and designing appropriate accompanying measures. Results show that trade liberalization has little but positive impact on welfare and poverty. Overall, industrial sectors benefit - relatively to agriculture - from trade liberalization and so are urban households relatively to their rural counterparts.
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Suggested Citation

  • John Cockburn & Bernard Decaluwe & Veronique Robichaud, 2007. "Trade liberalization and poverty - lessons from Asia and Africa," STUDIES IN TRADE AND INVESTMENT, in: Mia Mikic (ed.), FUTURE TRADE RESEARCH AREAS THAT MATTER TO DEVELOPING COUNTRY POLICYMAKERS, volume 61, chapter 4, pages 103-121, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    • Handle: RePEc:unt:ecchap:tipub2467_part4
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    References listed on IDEAS

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    1. Carolina Sanchez-Paramo, 2005. "Poverty in Ecuador," World Bank Publications - Reports 10333, The World Bank Group.
    2. Cogneau, Denis & Robilliard, Anne-Sophie, 2000. "Growth, distribution and poverty in Madagascar," TMD discussion papers 61, International Food Policy Research Institute (IFPRI).
    3. John Cockburn, 2002. "Trade Liberalisation and Poverty in Nepal: A Computable General Equilibrium Micro Simulation Analysis," CSAE Working Paper Series 2002-11, Centre for the Study of African Economies, University of Oxford.
    4. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Cahiers de recherche 9909, Université Laval - Département d'économique.
    5. Keeny, Roman & Hertel, Thomas, 2005. "GTAP-AGR: A Framework for Assessing the Implications of Multilateral Changes in Agricultural Policies," Technical Papers 283422, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche 0343, CIRPEE.
    7. de Janvry, Alain & Sadoulet, Elisabeth & Fargeix, Andre, 1991. "Politically feasible and equitable adjustment: Some alternatives for ecuador," World Development, Elsevier, vol. 19(11), pages 1577-1594, November.
    8. Unknown, 2001. "General Discussion," Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop, 2000: Trade Liberalization Under NAFTA: Report Card on Agriculture 16839, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
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    Cited by:

    1. Rizwana Siddiqui, 2007. "Modelling Gender Dimensions of the Impact of Economic Reforms in Pakistan," Working Papers MPIA 2007-13, PEP-MPIA.

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    More about this item

    Keywords

    Income; welfare; poverty; consumer price; compensation;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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