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

  • 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;)

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.

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File URL: http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_32.pdf
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Article provided by International Microsimulation Association in its journal International Journal of Microsimulation.

Volume (Year): 3 (2010)
Issue (Month): 1 ()
Pages: 109-113

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Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:109-113
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  1. Robert Baldwin & Frédéric Robert-Nicoud, 2006. "Trade and growth with heterogeneous firms," LSE Research Online Documents on Economics 19856, London School of Economics and Political Science, LSE Library.
  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. 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.
  4. Ravallion, Martin & Lokshin, Michael, 2004. "Gainers and losers from trade reform in Morocco," Policy Research Working Paper Series 3368, The World Bank.
  5. 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.
  6. 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.
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