Case Study: The growth and poverty impacts of trade liberalization in Senegal
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.
Volume (Year): 3 (2010)
Issue (Month): 1 ()
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References listed on IDEAS
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- Richard E. Baldwin & Frédéric Robert-Nicoud, 2006.
"Trade and Growth with Heterogenous Firms,"
NBER Working Papers
12326, National Bureau of Economic Research, Inc.
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- Ravallion, Martin & Lokshin, Michael, 2004. "Gainers and losers from trade reform in Morocco," Policy Research Working Paper Series 3368, The World Bank.
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