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A Simple Measure for Evaluation of Trade Policy Options with Application to Botswana


  • Leith, J Clark


This paper develops a simple measure for evaluating the static welfare gains and losses from the trade policy options facing a small open economy. The alternatives of a customs union and a free trade agreement are considered relative to the go-it-alone base case. The measure can be implemented empirically with modest data requirements, and is used to evaluate the trade policy options facing Botswana. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Leith, J Clark, 1995. "A Simple Measure for Evaluation of Trade Policy Options with Application to Botswana," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 4(2), pages 243-258, October.
  • Handle: RePEc:oup:jafrec:v:4:y:1995:i:2:p:243-58

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    References listed on IDEAS

    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Stefan Dercon & Pramila Krishnan, 2000. "Vulnerability, seasonality and poverty in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 25-53.
    3. Ravallion, Martin & Bidani, Benu, 1994. "How Robust Is a Poverty Profile?," World Bank Economic Review, World Bank Group, vol. 8(1), pages 75-102, January.
    4. Hentschel, J. & Lanjouw, P., 1996. "Constructing an Indicator of Consumption for the Analysis of Poverty. Principles and Illustrations with Reference to Ecuador," Papers 127, World Bank - Living Standards Measurement.
    5. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101.
    6. Kakwani, Nanak, 1993. "Statistical Inference in the Measurement of Poverty," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 632-639, November.
    7. Dercon, Stefan & Mekonnen, Tadesse, 1999. "A comparison of poverty in rural and urban Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 8(1).
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