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Assessing the impacts of trade on poverty and inequality

Author

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  • Francisco Galrao Carneiro
  • Jorge Saba Arbache

Abstract

This paper uses a computable general equilibrium model to simulate different trade liberalization policy scenarios and counterfactual microsimulations to assess the impacts of greater trade openness on household income distribution and poverty ratios. Our conclusion is that trade liberalization alone may not be sufficient to significantly reduce poverty and inequality.

Suggested Citation

  • Francisco Galrao Carneiro & Jorge Saba Arbache, 2003. "Assessing the impacts of trade on poverty and inequality," Applied Economics Letters, Taylor & Francis Journals, vol. 10(15), pages 989-994.
  • Handle: RePEc:taf:apeclt:v:10:y:2003:i:15:p:989-994
    DOI: 10.1080/1350485032000165421
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    References listed on IDEAS

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    1. Robinson, Sherman & Yunez-Naude, Antonio & Hinojosa-Ojeda, Raul & Lewis, Jeffrey D. & Devarajan, Shantayanan, 1999. "From stylized to applied models:: Building multisector CGE models for policy analysis," The North American Journal of Economics and Finance, Elsevier, vol. 10(1), pages 5-38.
    2. Löfgren, Hans & Harris, Rebecca Lee & Robinson, Sherman, 2001. "A standard computable general equilibrium (CGE) model in GAMS," TMD discussion papers 75, International Food Policy Research Institute (IFPRI).
    3. Carneiro, Francisco Galrao & Arbache, Jorge Saba, 2003. "The Impacts of Trade on the Brazilian Labor Market: A CGE Model Approach," World Development, Elsevier, vol. 31(9), pages 1581-1595, September.
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    Cited by:

    1. MacDonald, Ronald & Majeed, Muhammad Tariq, 2010. "Distributional and Poverty Consequences of Globalization: A Dynamic Comparative Analysis for Developing Countries," SIRE Discussion Papers 2010-62, Scottish Institute for Research in Economics (SIRE).
    2. Arief Anshory Yusuf, 2004. "Poverty and Environmental Degradation: Searching for Theoretical Linkages," Working Papers in Economics and Development Studies (WoPEDS) 200403, Department of Economics, Padjadjaran University, revised Oct 2004.
    3. Changkyu Choi, 2006. "Does foreign direct investment affect domestic income inequality?," Applied Economics Letters, Taylor & Francis Journals, vol. 13(12), pages 811-814.
    4. Sabine Mage-Bertomeu, 2006. "Les modèles d'équilibre général appliqués à la politique commerciale : développements récents," Revue d'économie politique, Dalloz, vol. 116(3), pages 357-381.
    5. Gabriel Montes Rojas, 2006. "Skill premia in Mexico: demand and supply factors," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 917-924.

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