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Impacts of agricultural trade liberalization on poverty: sensitivity of results to factors mobility among sectors

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  • Gerard, Francoise
  • Piketty, Marie-Gabrielle

Abstract

The Purposes of this paper are twofold (i) to evaluate changes in welfare gains and their distribution due to trade liberalization when imperfect labor markets are considered, (ii) to evaluate the impact of the recent reforms of the European agricultural policy on the world welfare. The results of two versions of a dynamic world computable general equilibrium (CGE) model, using the GTAP database version 6 are compared. In the first version, a standard world CGE approach is followed with perfect labor mobility across sectors. In the second version we assume that labor shifts freely within the aggregated sectors -agriculture, manufactures, services- but not across them .After a brief description of the two versions, changes in welfare, represented not only by the world GDP but also by the consumption level of two types of households (middle-low and middle-high) in 7 regions (Brazil, China, India, Least developed countries, European Union, United States, Rest of the World) after partial trade liberalization are presented. Theoretical and political consequences of the results are discussed.

Suggested Citation

  • Gerard, Francoise & Piketty, Marie-Gabrielle, 2007. "Impacts of agricultural trade liberalization on poverty: sensitivity of results to factors mobility among sectors," 106th Seminar, October 25-27, 2007, Montpellier, France 7903, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa106:7903
    DOI: 10.22004/ag.econ.7903
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    References listed on IDEAS

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    1. Keeney, Roman & Thomas Hertel, 2005. "GTAP-AGR : A Framework for Assessing the Implications of Multilateral Changes in Agricultural Policies," GTAP Technical Papers 1869, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. Reimer, Jeffrey J., 2002. "Estimating the poverty impacts of trade liberalization," Policy Research Working Paper Series 2790, The World Bank.
    3. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889.
    4. Kym Anderson (ed.), 2005. "The WTO and Agriculture," Books, Edward Elgar Publishing, volume 0, number 3024.
    5. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Global impacts of Doha trade reform scenarios on poverty," Policy Research Working Paper Series 3735, The World Bank.
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