Making unilateral trade liberalisation beneficial to the poor
In this paper, we investigate the impacts of unilateral import liberalisation by a representative South Asian developing economy, Nepal, and demonstrate those conditions required to make the impacts 'pro-poor.' Applying the Computable General Equilibrium model to Social Accounting Matrix data, we conclude that import liberalisation is growth-enhancing but that, unfortunately, the rich benefit more than do the poor. We envisage a restructured but plausible model economy that requires a transformational period of ten years, and simulate unilateral trade liberalisation but, in the context of a dynamic model. We conclude that improvement in efficiency parameters, reorganisation of investment patterns, along with reallocation of factors of production by both household group and activity type are required to make growth accrued by import liberalisation 'pro-poor' in developing economies such as that of Nepal.
References listed on IDEAS
Please 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.:
- Elena Ianchovichina & Alessandro Nicita & Isidro Soloaga, 2002.
"Trade Reform and Poverty: The Case of Mexico,"
The World Economy,
Wiley Blackwell, vol. 25(7), pages 945-972, 07.
- Ianchovichina, Elena & Nicita, Alessandro & Soloaga, Isidro, 2001. "Trade reform and household welfare : the case of Mexico," Policy Research Working Paper Series 2667, The World Bank.
- Pravin Krishna & Devashish Mitra, 2003. "Reciprocated Unilateralism in Trade Policy: An Interest-Group Approach," NBER Working Papers 9631, National Bureau of Economic Research, Inc.
- Thurlow, James, 2006. "Has trade liberalization in South Africa affected men and women differently?:," DSGD discussion papers 36, International Food Policy Research Institute (IFPRI).
- repec:ebl:ecbull:v:15:y:2007:i:17:p:1-14 is not listed on IDEAS
- Neil McCulloch & Bob Baulch & Milasoa Cherel-Robson, 2000. "Poverty, Inequality and Growth in Zambia during the 1990s," Econometrics 0004004, EconWPA.
- McCulloch, Neil & Baulch, Bob & Cherel-Robson, Milasoa, 2001. "Poverty, Inequality and Growth in Zambia during the 1990s," WIDER Working Paper Series 123, World Institute for Development Economic Research (UNU-WIDER).
- John Asafu-Adjaye, 2007. "Liberalising Trade in the Agriculture Sector of a Small Island State: The Case of Fiji," The World Economy, Wiley Blackwell, vol. 30(10), pages 1550-1567, October.
- Kym Anderson, 2006. "Reducing Distortions to Agricultural Incentives: Progress, Pitfalls, and Prospects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1135-1146.
- Anderson, Kym, 2006. "Reducing distortions to agricultural incentives : progress, pitfalls, and prospects," Policy Research Working Paper Series 4092, The World Bank.
- Sanjaya Acharya, 2007. "Flow Structure in Nepal and the Benefit to the Poor," Economics Bulletin, AccessEcon, vol. 15(17), pages 1-14.
- Lofgren, Hans & El-Said, Moataz & Robinson, Sherman, 1999. "Trade liberalization and complementary domestic policies: a rural-urban general equilibrium analysis of Morocco," TMD discussion papers 41, International Food Policy Research Institute (IFPRI).
- Rajagopal, 2006. "Where Did the Trade Liberalization Drive Latin American Economy: A Cross Section Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(2).
- Rajagopal, 2005. "Where Did the Trade Liberalization Drive Latin American Economy: A Cross Section Analysis," Econometrics 0504003, EconWPA.
- Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-1051, September.
- Harrison, Ann & Hanson, Gordon, 1999. "Who gains from trade reform? Some remaining puzzles," Journal of Development Economics, Elsevier, vol. 59(1), pages 125-154, June.
- Ann Harrison & Gordon Hanson, 1999. "Who Gains from Trade Reform? Some Remaining Puzzles," NBER Working Papers 6915, National Bureau of Economic Research, Inc.
- Matusz, Steven J. & Tarr, David, 1999. "Adjusting to trade policy reform," Policy Research Working Paper Series 2142, The World Bank.
- Margaret Chitiga & Tonia Kandiero & Ramos Mabugu, 2005. "Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe," Working Papers MPIA 2005-01, PEP-MPIA.
- Margaret Chitiga & Ramos Mabugu & Tonia Kandiero, 2007. "A Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe," Working Papers 200715, University of Pretoria, Department of Economics.
- Mauricio Mesquita Moreira, 2004. "Brazil’s Trade Liberalization and Growth: Has it Failed?," International Trade 0412008, EconWPA.
- McLaren, John, 1997. "Size, Sunk Costs, and Judge Bowker's Objection to Free Trade," American Economic Review, American Economic Association, vol. 87(3), pages 400-420, June.
- Ramos Mabugu & Margaret Chitiga, 2007. "South Africa Trade Liberalization and Poverty in a Dynamic Microsimulation CGE Model," Working Papers 200718, University of Pretoria, Department of Economics.
- de Melo, Jaime & Montenegro, Claudio & Panagariya, Arvind, 1992. "Regional integration, old and new," Policy Research Working Paper Series 985, The World Bank.
- Acharya, Sanjaya & Cohen, Solomon, 2008. "Trade liberalisation and household welfare in Nepal," Journal of Policy Modeling, Elsevier, vol. 30(6), pages 1057-1060.
- Lori G. Kletzer, 2001. "Job Loss from Imports: Measuring the Costs," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 110, November.
- Sebastian Edwards & Daniel Lederman, 1998. "The Political Economy of Unilateral Trade Liberalization: The Case of Chile," NBER Working Papers 6510, National Bureau of Economic Research, Inc.
- Tubagus Feridhanusetyawan & Mari Pangestu, 2003. "Indonesian Trade Liberalisation: Estimating The Gains," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(1), pages 51-74.
- Carlos E. J. M. Zarazaga, 2000. "Measuring the benefits of unilateral trade liberalization; part 2: dynamic models," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q1, pages 29-39. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:soceps:v:45:y:2011:i:2:p:60-71. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.