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Case Study: The growth and poverty impacts of trade liberalization in Senegal

Author

Listed:
  • John Cockburn

    () (Université Laval, Pavillon J-A DeSève, Quebec, Canada, G1V 0A6;)

  • Erwin Corong

    () (Monash University, Centre of Policy Studies, Clayton, Victoria, Australia, 3168)

  • Bernard Decaluwé

    () (Université Laval, Pavillon J-A DeSève, Quebec, Canada, G1V 0A6;)

  • Ismaël Fofana

    () (Université Laval, Pavillon J-A DeSève, Quebec, Canada, G1V 0A6)

  • Véronique Robichaud

    () (Université Laval, Pavillon J-A DeSève, Quebec, Canada, G1V 0A6;)

Abstract

Most empirical studies find relatively small welfare and poverty impacts of trade liberalization, mainly as a result of the static framework generally used, in which welfare gains and poverty impacts result solely from a short term reallocation of resources. Using Senegal as a case study, we illustrate the results of integrating the growth and productivity gain effects of trade liberalization with the resulting long-run impacts on welfare and poverty. We show that the distributional impacts between poor and non-poor depend upon the specific nature of the trade liberalization policies adopted; and the characteristics of the economy in which it occurs. In the Senegalese case, the predicted principal beneficiaries of trade liberalization are urban and higher skill workers.

Suggested Citation

  • John Cockburn & Erwin Corong & Bernard Decaluwé & Ismaël Fofana & Véronique Robichaud, 2010. "Case Study: The growth and poverty impacts of trade liberalization in Senegal," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 109-113.
  • Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:109-113
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    File URL: http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_32.pdf
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    References listed on IDEAS

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    1. Baldwin, Richard E. & Robert-Nicoud, Frederic, 2008. "Trade and growth with heterogeneous firms," Journal of International Economics, Elsevier, vol. 74(1), pages 21-34, January.
    2. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
    3. Kim, Euysung, 2000. "Trade liberalization and productivity growth in Korean manufacturing industries: price protection, market power, and scale efficiency," Journal of Development Economics, Elsevier, vol. 62(1), pages 55-83, June.
    4. Ravallion, Martin & Lokshin, Michael, 2004. "Gainers and losers from trade reform in Morocco," Policy Research Working Paper Series 3368, The World Bank.
    5. John Cockburn & Erwin Corong & Bernard Decaluwé & Ismaël Fofana & Véronique Robichaud, 2010. "The Gender and Poverty Impacts of Trade Liberalization in Senegal," Cahiers de recherche 1013, CIRPEE.
    6. Richard Baldwin, 2005. "Heterogeneous Firms and Trade: Testable and Untestable Properties of the Melitz Model," NBER Working Papers 11471, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Permani Risti, 2011. "The Impacts of Trade Liberalisation and Technological Change on GDP Growth in Indonesia: A Meta Regression Analysis," Global Economy Journal, De Gruyter, vol. 11(4), pages 1-30, December.

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