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Trade reforms, market access, and poverty in Argentina

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  • Porto, Guido G.

Abstract

Much of the literature that studies the relationship between trade and poverty in developing countries focuses on the effects of national trade reforms, such as own tariff reductions. In contrast, the World Trade Organization negotiations at the Doha Round were more concerned with the poverty effects on low-income countries, and of foreign reforms, such as the elimination of agricultural subsidies in industrial economies. The author empirically compares the relative poverty impacts of national and foreign trade reforms in Argentina. The author investigates national trade reforms, including tariff cuts on consumption goods and capital goods in Argentina. Foreign trade reforms include the elimination, in industrial countries, of agricultural subsidies and trade barriers on agricultural manufactures and industrial manufactures. Thesepolicies enhance the market access of Argentine exports. Overall, a combination of own reforms and enhanced market access would cause poverty to decline by between 1.7 and 4.6 percentage points. This evidence suggests that trade policies can be important poverty-reducing instruments in Argentina.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3135.

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Date of creation: 30 Sep 2003
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Handle: RePEc:wbk:wbrwps:3135

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Keywords: Economic Theory&Research; Environmental Economics&Policies; Health Economics&Finance; Labor Policies; Payment Systems&Infrastructure; Environmental Economics&Policies; Economic Theory&Research; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Health Economics&Finance; Markets and Market Access;

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  1. Goldberg, Pinelopi Koujianou & Pavcnik, Nina, 2005. "Trade, wages, and the political economy of trade protection: evidence from the Colombian trade reforms," Journal of International Economics, Elsevier, Elsevier, vol. 66(1), pages 75-105, May.
  2. Ravallion, Martin, 1990. "Rural Welfare Effects of Food Price Changes under Induced Wage Responses: Theory and Evidence for Bangladesh," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 574-85, July.
  3. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2002. "Reducing Agriculture Tariffs Versus Domestic Support: What's More Important for Developing Countries?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3576, C.E.P.R. Discussion Papers.
  4. Kloek, T, 1981. "OLS Estimation in a Model Where a Microvariable Is Explained by Aggregates and Contemporaneous Disturbances Are Equicorrelated," Econometrica, Econometric Society, Econometric Society, vol. 49(1), pages 205-07, January.
  5. Linda Goldberg & Joseph Tracy, 2001. "Exchange Rates and Wages," NBER Working Papers 8137, National Bureau of Economic Research, Inc.
  6. Hoekman, Bernanrd & Ng, Francis & Olarreaga, Marcelo, 2003. "Reducing agrcultural tariffs versus domestic support : what's more important for developing countries?," Policy Research Working Paper Series 2918, The World Bank.
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