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Impacts of Agricultural Trade Liberalization on Poverty: Sensitivity of Results to Factors Mobiliy Among Sectors

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  • Gerard, F.
  • Piketty, M.G.
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    Abstract

    The purposes of this paper are twofold (i) to evaluate changes in welfare gains and their distribution due to trade liberalization when imperfect labor markets are considered, (ii) to evaluate the impact of the recent reforms of European agricultural policy on the world welfare. The results of two versions of a dynamic world computable genaral equilibrium (CGE) model, usign the GTAP database version 6 are compared. In the first version, a standard world CGE approach is followed by perfect labor mobility across sectors. In the second version we assume that labor shift s freely within the aggregated sectors -agriculture, manufactures, services,- but not across them. After a brief description of the two versions, changes in welfare, represented not only by the world GDP but also by the consumption level of two types of household (middle-low and middle-high) in 7 regions (Brazil, China, India, Least developed countries, European Union, United States, Rest of the World) after partial trade liberalization are presented. Theoretical and political consequences of the results are discussed. ...French Abstract : Cet article a un double objectif (i) évaluer les modifications des gains de la libéralisation lorsque certaines imperfections des marchés du travail sont prises en compte, (ii) quantifier les impacts des réformes récentes de la Politique Agricole Commune. Deux versions d'un modèle mondial d'équilibre général, utilisant la base de données GTAP (version 6), sont utilisées à cet effet : dans la première l'hypothèse standard de mobilité parfaite du travail entre secteurs est adoptée, alors que dans la seconde on suppose que si le travail se déplace librement à l'intérieur de secteurs agrégés (agriculture, manufactures, services), il ne peut passer de l'un à l'autre. Après une brève description des principales caractéristiques des deux versions du modèle, les résultats obtenus dans des scénarii de libéralisation partielle, pour 7 régions du monde (Brésil, Chine, Inde, PMA, UE, USA, RDM) et deux types de ménages (riches et pauvres) sont présentés. Les conséquences théoriques et politiques sont ensuite discutées.

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    Bibliographic Info

    Paper provided by UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France in its series Working Papers MOISA with number 200805.

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    Date of creation: 2008
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    Handle: RePEc:umr:wpaper:200805

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    Keywords: TRADE LIBERALIZATION; MARKET; EUROPEAN AGRICULTURAL POLICY; LABOR MARKET;

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    1. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications, The World Bank, number 6889, July.
    2. Reimer, Jeffrey J., 2002. "Estimating the poverty impacts of trade liberalization," Policy Research Working Paper Series 2790, The World Bank.
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