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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 effect of trade reform at the household level are presented for India.

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File URL: ftp://repec.bus.usu.edu/RePEc/uth/wpaper/DEFWP2008-03.pdf
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Bibliographic Info

Paper provided by Utah State University, Department of Economics and Finance in its series Working Papers with number 200803.

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Length: 24 pages
Date of creation: 19 Dec 2008
Date of revision:
Handle: RePEc:uth:wpaper:200803

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

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  1. John Gilbert, 2008. "Agricultural Trade Reform and Poverty in the Asia-Pacific: A Survey and Some New Results," Working Papers, Utah State University, Department of Economics 2008-01, Utah State University, Department of Economics, revised 19 Dec 2008.
  2. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 45(1), pages 39-82, March.
  3. Robinson, Sherman & Thierfelder, Karen, 1999. "Trade liberalization and regional integration: the search for large numbers," TMD discussion papers, International Food Policy Research Institute (IFPRI) 34, International Food Policy Research Institute (IFPRI).
  4. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications, The World Bank, number 6889, August.
  5. 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.
  6. Shaohua Chen & Martin Ravallion, 2004. "How Have the World's Poorest Fared since the Early 1980s?," World Bank Research Observer, World Bank Group, World Bank Group, vol. 19(2), pages 141-169.
  7. Thomas Hertel & Jeffrey Reimer, 2005. "Predicting the poverty impacts of trade reform," The Journal of International Trade & Economic Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 14(4), pages 377-405.
  8. Robert Scollay & John Gilbert, 2000. "Measuring the Gains from APEC Trade Liberalisation: An Overview of CGE Assessments," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 23(2), pages 175-197, 02.
  9. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 42(1), pages 72-115, March.
  10. Basanta K. Pradhan & Sahoo Amarendra, 2006. "The Impact of Trade Liberalization on Household Welfare and Poverty in India," Working Papers MPIA, PEP-MPIA 2006-01, PEP-MPIA.
  11. Hertel, Thomas & Hummels, David & Ivanic, Maros & Keeney, Roman, 2007. "How confident can we be of CGE-based assessments of Free Trade Agreements?," Economic Modelling, Elsevier, Elsevier, vol. 24(4), pages 611-635, July.
  12. Thomas W. Hertel & L. Alan Winters, 2005. "Estimating the Poverty Impacts of a Prospective Doha Development Agenda," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 28(8), pages 1057-1071, 08.
  13. 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.
  14. John Gilbert & Thomas Wahl, 2002. "Applied General Equilibrium Assessments of Trade Libereralisation in China," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 25(5), pages 697-731, 05.
  15. L. Alan Winters, 2002. "Trade Liberalisation and Poverty: What are the Links?," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 25(9), pages 1339-1367, 09.
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