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BIMSTEC-Japan Trade Cooperation and Poverty in Asia

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Abstract

We review the literature on the relationship between trade policy reform and poverty, and recent approaches in the numerical simulation literature to estimating the impact of alternative trade reform scenarios. The GTAP model is then used to simulate the effect of the trade cooperation among the economies of BIMSTEC and Japan on aggregate welfare and poverty in the BIMSTEC member economies. As a case study, the results of the global model simulations are then used as an input to a more detailed model of simulation model of India, which identifies nine household groups classifed by their source of income and consumption pattern. Detailed estimates of the e ect of trade reform at the household level are presented for India.

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File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/eri2008-03.pdf
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Bibliographic Info

Paper provided by Utah State University, Department of Economics in its series Working Papers with number 2008-03.

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Length: 24 pages
Date of creation: 19 Dec 2008
Date of revision: 19 Dec 2008
Handle: RePEc:usu:wpaper:2008-03

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Keywords: Trade reform; CGE; regional trading agreements; poverty; India; BIMSTEC;

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  1. Thomas Hertel & David Hummels & Maros Ivanic & Roman Keeney, 2004. "How Confident Can We Be in CGE-Based Assessments of Free Trade Agreements?," NBER Working Papers 10477, National Bureau of Economic Research, Inc.
  2. Thomas W. Hertel & Jeffrey J. Reimer, 2006. "Predicting the Poverty Impacts of Trade Reform," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, May.
  3. Gilbert, John & Wahl, Thomas, 2003. "Labor market distortions and China's WTO accession package:: an applied general equilibrium assessment," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 774-794, December.
  4. John Gilbert, 2008. "Agricultural Trade Reform and Poverty in the Asia-Pacific: A Survey and Some New Results," Working Papers 200801, Utah State University, Department of Economics and Finance.
  5. Basanta K. Pradhan & Sahoo Amarendra, 2006. "The Impact of Trade Liberalization on Household Welfare and Poverty in India," Working Papers MPIA 2006-01, PEP-MPIA.
  6. Anderson, Kym & Martin, Will, 2005. "Agricultural trade reform and the Doha development agenda," Policy Research Working Paper Series 3607, The World Bank.
  7. Philip D. Adams & Mark Horridge & Brian Parmenter & Xiao-Guang Zhang, 1998. "Long-run Effects on China of APEC Trade Liberalisation," Centre of Policy Studies/IMPACT Centre Working Papers g-130, Victoria University, Centre of Policy Studies/IMPACT Centre.
  8. John Gilbert & Thomas Wahl, 2002. "Applied General Equilibrium Assessments of Trade Libereralisation in China," The World Economy, Wiley Blackwell, vol. 25(5), pages 697-731, 05.
  9. Chen, Shaohua & Ravallion, Martin, 2004. "How Have the World's Poorest Fared Since the Early 1980s?," Policy Research Working Paper Series 3341, The World Bank.
  10. Thomas W. Hertel & L. Alan Winters, 2005. "Estimating the Poverty Impacts of a Prospective Doha Development Agenda," The World Economy, Wiley Blackwell, vol. 28(8), pages 1057-1071, 08.
  11. L. Alan Winters, 2002. "Trade Liberalisation and Poverty: What are the Links?," The World Economy, Wiley Blackwell, vol. 25(9), pages 1339-1367, 09.
  12. Robinson, Sherman & Thierfelder, Karen, 1999. "Trade liberalization and regional integration: the search for large numbers," TMD discussion papers 34, International Food Policy Research Institute (IFPRI).
  13. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," NBER Working Papers 12885, National Bureau of Economic Research, Inc.
  14. Robert Scollay & John Gilbert, 2000. "Measuring the Gains from APEC Trade Liberalisation: An Overview of CGE Assessments," The World Economy, Wiley Blackwell, vol. 23(2), pages 175-197, 02.
  15. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
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