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Tracing the Poverty Impact of Market Reforms in Bangladesh

Author

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  • Alam, Mohammad Jahangir
  • Bhuiyan, Nazmul
  • Begum, Ismat Ara
  • Van Huylenbroeck, Guido

Abstract

The paper analyse the impact of market reforms on poverty in Bangladesh. To estimate the poverty impact at household level, a binary logit model has been estimated with two latest waves of household income and expenditure data from Bangladesh. The results show that a significant improvement has been made in reducing poverty in the recent decades. As a net importing country, liberalization might has direct impact on household’s real income through the changes of real rice prices. The results also show that net rice buyer households are poorer than net rice sellers. So, decreased rice prices in domestic markets induced by liberalization have benefited the net rice buyers in Bangladesh, hence poverty declines.

Suggested Citation

  • Alam, Mohammad Jahangir & Bhuiyan, Nazmul & Begum, Ismat Ara & Van Huylenbroeck, Guido, 2012. "Tracing the Poverty Impact of Market Reforms in Bangladesh," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123758, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:123758
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    File URL: http://ageconsearch.umn.edu/record/123758/files/IAAE2012MReform_Alam%20et%20al..pdf
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    References listed on IDEAS

    as
    1. Ravallion, Martin & Sen, Binayak, 1996. "When Method Matters: Monitoring Poverty in Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 44(4), pages 761-792, July.
    2. Arndt, Channing & Dorosh, Paul A. & Fontana, Marzia & Zohir, Sajjad & El-Said, Moataz & Lungren, Christen, 2002. "Opportunities and challenges in agriculture and garments," TMD discussion papers 107, International Food Policy Research Institute (IFPRI).
    3. Durevall, Dick & Munshi, Farzana, 2006. "Trade Liberalization and Wage Inequality: Empirical Evidence from Bangladesh," Working Papers in Economics 205, University of Gothenburg, Department of Economics.
    4. Bazlul Khondker & Mustafa Mujeri & Selim Raihan, 2006. "Welfare and Poverty Impacts of Tariff Reforms in Bangladesh: a General Equilibrium Approach," Working Papers MPIA 2006-05, PEP-MPIA.
    5. Raihan, Selim & Razzaque, Mohammad A, 2007. "WTO and regional trade negotiation outcomes: quantitative assessments of potential implications on Bangladesh," MPRA Paper 38475, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Agricultural and Food Policy; Food Security and Poverty; International Development; International Relations/Trade;

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