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Case Study: Impacts of trade liberalization on poverty and inequality in Argentina: policy insights from a non-parametric CGE Microsimulation analysis

Author

Listed:
  • Martín Cicowiez

    (Facultad de Ciencias Económicas, Calle 6 e/47 y 48, Oficina 516, La Plata, 1900, Argentina)

  • Carolina Díaz-Bonilla

    (World Bank Group, 1818 H Street N.W., Washington D.C., 20433, USA)

  • Eugenio Díaz-Bonilla

    (Inter-American Development Bank, 1300 New York Avenue N.W., Washington D.C., 20577, USA)

Abstract

This paper studies the economic, poverty, and income inequality impacts of both world and domestic trade reform in Argentina, with a special focus on export taxes. Argentina offers an interesting case study as the only large agricultural exporter that has, at many points in its history, applied export taxes to several of its agricultural products. The paper combines results from a global economy-wide model (World Bank?s LINKAGE model), a national CGE model, and microsimulations. The results suggest that full liberalization of world trade (including subsidies and import taxes, but not export taxes), both for agricultural and non-agricultural goods, reduces poverty and inequality in Argentina. However, if only agricultural goods are included, indicators for poverty and inequality do not improve and even deteriorate somewhat. This is particularly the case if export taxes are eliminated.

Suggested Citation

  • Martín Cicowiez & Carolina Díaz-Bonilla & Eugenio Díaz-Bonilla, 2010. "Case Study: Impacts of trade liberalization on poverty and inequality in Argentina: policy insights from a non-parametric CGE Microsimulation analysis," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 118-122.
    • Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:118-122
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    File URL: http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_34.pdf
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    References listed on IDEAS

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    1. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications - Books, The World Bank Group, number 2611, August.
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    Cited by:

    1. Atif Khan Jadoon & Ambreen Sarwar, 2020. "Is Trade Liberalisation Pro‐Poor in Pakistan? Evidence from Large‐Scale Manufacturing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(3), pages 360-394, September.
    2. Khan, Muhammad Aamir & Walmsley, Terrie & Mukhopadhyay, Kakali, 2021. "Trade liberalization and income inequality: The case for Pakistan," Journal of Asian Economics, Elsevier, vol. 74(C).
    3. Julio Vicente Cateia & Luc Savard, 2025. "Trade and distribution in Guinea-Bissau: A computable general equilibrium analysis," International Economics and Economic Policy, Springer, vol. 22(1), pages 1-30, February.
    4. Paolo Giordano & Kun Li, 2012. "An Updated Assessment of the Trade and Poverty Nexus in Latin America," IDB Publications (Working Papers) 79119, Inter-American Development Bank.
    5. Giordano, Paolo & Li, Kun, 2012. "An Updated Assessment of the Trade and Poverty Nexus in Latin America," IDB Publications (Working Papers) 4209, Inter-American Development Bank.

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