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Trade Liberalization, Poverty And Inequality: Evidence From Indian Districts

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Petia Topalova ()

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Abstract

Although it is commonly believed that trade liberalization results in higher GDP, little is known about its effects on poverty and inequality. This paper uses the sharp trade liberalization in India in 1991, spurred to a large extent by external factors, to measure the causal impact of trade liberalization on poverty and inequality in districts in India. Variation in pre-liberalization industrial composition across districts in India and the variation in the degree of liberalization across industries allow for a difference-in- difference approach, establishing whether certain areas benefited more from, or bore a disproportionate share of the burden of liberalization.

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Paper provided by esocialsciences.com in its series Working Papers with number id:222.

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Date of creation: 2005
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Keywords: trade; trade liberalisation; inequality; poverty;

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References listed on IDEAS
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.:
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Cited by:
(explanations, 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.)

  1. Brambilla, Irene & Porto, Guido & Tarozzi, Alessandro, 2009. "Adjusting to trade-policy changes in export markets : evidence from U.S. antidumping duties on Vietnamese catfish," Policy Research Working Paper Series 4990, The World Bank. [Downloadable!]
  2. Sandra Polaski et al, 2008. "Policy dilemmas in India: The Impact of changes in agricultural prices on rural and urban poverty," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-012, Indira Gandhi Institute of Development Research, Mumbai, India. [Downloadable!]
  3. Ann Harrison, 2006. "Globalization and Poverty," NBER Working Papers 12347, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Esther Duflo & Rohini Pande, 2005. "Dams," Working Papers 923, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  5. Ann Harrison & Margaret McMillan, 2007. "On the links between globalization and poverty," Journal of Economic Inequality, Springer, vol. 5(1), pages 123-134, April. [Downloadable!] (restricted)
  6. Irene Brambilla & Guido Porto & Alessandro Tarozzi, 2008. "Adjusting to Trade Policy: Evidence from U.S. Antidumping Duties on Vietnamese Catfish," NBER Working Papers 14495, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Mukesh Eswaran & Ashok Kotwal & Bharat Ramaswami & Wilima Wadhwa, 2007. "How does poverty decline? Evidence from India, 1983-1999," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 07-05, Indian Statistical Institute, New Delhi, India. [Downloadable!]
  8. Sonia Bhalotra, 2007. "Fatal Fluctuations? - Cyclicality in Infant Mortality in India," The Centre for Market and Public Organisation 07/181, Department of Economics, University of Bristol, UK. [Downloadable!]
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  9. Charles Ackah, & Oliver Morrissey, & Simon Appleton, . "Who Gains from Trade Protection in Ghana? A Household-Level Analysis," Discussion Papers 07/02, University of Nottingham, CREDIT. [Downloadable!]
  10. Massimiliano Cali & Carlo Menon, 2009. "Does Urbanisation Affect Rural Poverty? Evidence from Indian Districts," SERC Discussion Papers 0014, Spatial Economics Research Centre, LSE. [Downloadable!]
  11. Rohini Pande & Christopher Udry, 2005. "Institutions and Development:A View from Below," Working Papers 928, Economic Growth Center, Yale University. [Downloadable!]
  12. Chris Papageorgiou & Subir Lall & Florence Jaumotte, 2008. "Rising Income Inequality: Technology, or Trade and Financial Globalization?," IMF Working Papers 08/185, International Monetary Fund. [Downloadable!]
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