Has trade liberalization in South Africa affected men and women differently?:
Abstract
"Trade liberalization is a central part of South Africa's post-Apartheid development strategy. However, despite considerable reforms, the country has failed to generate pro-poor growth, with both unemployment and inequality worsening over the last ten years. This has raised concern that trade liberalization may have worked against the country's development objectives. This study uses a dynamic general equilibrium and microsimulation model to assess the effects of trade liberalization on growth, employment and poverty in South Africa. More specifically, it examines how men and women have been affected differently and whether liberalization has contributed to the faster rise in female unemployment and poverty. The results suggest that trade policies have not contributed to increased poverty and that trade-induced technological change has accelerated growth. However, liberalization has changed the sectoral structure of production and has exacerbated income inequality. While male and female workers have benefited from trade-induced growth, it is male-headed households who have benefited more from rising factor incomes. Trade reforms have however contributed to the observed decline in the gender wage gap, but this has been driven by rising employment amongst higher-skilled female workers. As such, the decline in poverty amongst female-headed households has remained small. While further liberalization may increase growth and reduce poverty, it is men and male-headed households who are more likely to benefit. These findings suggest that, while there is no trade-off between trade reform and poverty reduction, the country should not rely on further liberalization to generate pro-poor growth or address the prevailing inequalities between different population groups, such as men and women." Author's AbstractDownload Info
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Paper provided by International Food Policy Research Institute (IFPRI) in its series DSGD discussion papers with number 36.Length:
Date of creation: 2006
Date of revision:
Handle: RePEc:fpr:dsgddp:36
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Related research
Keywords: trade liberalization; Inequality; Unemployment; General equilibrium model; Microsimulation model; Poverty; Gender issues; Female labor; Income inequality; Trade reform; Pro-poor growth;This paper has been announced in the following NEP Reports:
- NEP-AFR-2006-09-23 (Africa)
- NEP-ALL-2006-09-23 (All new papers)
- NEP-DEV-2006-09-23 (Development)
- NEP-INT-2006-09-23 (International Trade)
References
References listed on IDEASPlease 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.:
- Vivek B. Arora & Ashok Bhundia, 2003. "Potential Output and Total Factor Productivity Growth in Post-Apartheid South Africa," IMF Working Papers 03/178, International Monetary Fund.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Acharya, Sanjaya, 2011. "Making unilateral trade liberalisation beneficial to the poor," Socio-Economic Planning Sciences, Elsevier, vol. 45(2), pages 60-71, June.
- Dorrit Posel & Michael Rogan, 2012.
"Gendered trends in poverty in the post-apartheid period, 1997--2006,"
Development Southern Africa,
Taylor and Francis Journals, vol. 29(1), pages 97-113, March.
- Dorrit Posel & Michael Rogan, 2011. "Gendered Trends in Poverty in the Post-Apartheid Period, 1997 - 2006," Working Papers 205, Economic Research Southern Africa.
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