Trade-Induced Changes in Economic Inequality: Assessment Issues and Policy Implications for Developing Countries
The starting point of this paper is given by country situations where trade liberalization is expected to be poverty and inequality alleviating in the long run while inducing a short run increase in poverty or in inequality. The question we ask is what are the distributive aspects of trade which are worth documenting to better help governments integrate trade policies within a global policy framework so as to enhance growth and reduce poverty and inequality. The method followed is a literature review, organized according to salient issues given by the three acceptations of fairness implied by the inclusion of the “Development” objective in the world trade liberalization agenda. A “pro-development” trade liberalization agenda should correct past unfairness in trade regime, which raises the broad issue of country level ex post assessment. It should equally reduce poverty, which point toward household level ex ante assessment. Last, because development is basically a dynamic process, the distributive-dynamic effects of trade liberalization are also considered. A synthesis of our ten main results concludes the paper.
|Date of creation:||2007|
|Date of revision:|
|Publication status:||Published in , 2009, pages 19-44|
|Contact details of provider:|| Postal: 65 Bd. F. Mitterrand, 63000 Clermont-Ferrand|
Phone: (33-4) 73 17 74 00
Fax: (33-4) 73 17 74 28
Web page: http://cerdi.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Devarajan, Shantayanan & Rodrik, Dani, 1991.
"Pro-competitive effects of trade reform : Results from a CGE model of Cameroon,"
European Economic Review,
Elsevier, vol. 35(5), pages 1157-1184, July.
- Shantayanan Devarajan & Dani Rodrik, 1989. "Pro-Competitive Effects of Trade Reform: Results from a CGE Model of Cameroon," NBER Working Papers 3176, National Bureau of Economic Research, Inc.
- Rodríguez, Francisco & Rodrik, Dani, 1999.
"Trade Policy and Economic Growth: A Sceptic's Guide to the Cross-National Evidence,"
CEPR Discussion Papers
2143, C.E.P.R. Discussion Papers.
- Francisco Rodriguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338 National Bureau of Economic Research, Inc.
- Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: a Skeptic's Guide to the Cross-National Evidence," Working Papers 9912, Economic Research Forum, revised Apr 1999.
- Bruce C. Greenwald & Joseph E. Stiglitz, 1986.
"Imperfect Information, Credit Markets and Unemployment,"
NBER Working Papers
2093, National Bureau of Economic Research, Inc.
- Greenwald, Bruce C. & Stiglitz, Joseph E., 1987. "Imperfect information, credit markets and unemployment," European Economic Review, Elsevier, vol. 31(1-2), pages 444-456.
- Furusawa, Taiji & Lai, Edwin L. -C., 1999. "Adjustment costs and gradual trade liberalization," Journal of International Economics, Elsevier, vol. 49(2), pages 333-361, December.
- Fischer, Ronald D., 2001. "The evolution of inequality after trade liberalization," Journal of Development Economics, Elsevier, vol. 66(2), pages 555-579, December.
- Harrison, Ann & Hanson, Gordon, 1999.
"Who gains from trade reform? Some remaining puzzles,"
Journal of Development Economics,
Elsevier, vol. 59(1), pages 125-154, June.
- Ann Harrison & Gordon Hanson, 1999. "Who Gains from Trade Reform? Some Remaining Puzzles," NBER Working Papers 6915, National Bureau of Economic Research, Inc.
- Harris, Richard, 1984.
"Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition,"
American Economic Review,
American Economic Association, vol. 74(5), pages 1016-32, December.
- Richard Harris, 1983. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," Working Papers 524, Queen's University, Department of Economics.
- Mattias Lundberg & Lyn Squire, 2003. "The simultaneous evolution of growth and inequality," Economic Journal, Royal Economic Society, vol. 113(487), pages 326-344, 04.
- Ravallion, Martin & van de Walle, Dominique, 1991. "The impact on poverty of food pricing reforms: A welfare analysis for Indonesia," Journal of Policy Modeling, Elsevier, vol. 13(2), pages 281-299.
- Bourguignon, F. & Morrisson, C., 1990.
"Income distribution, development and foreign trade : A cross-sectional analysis,"
European Economic Review,
Elsevier, vol. 34(6), pages 1113-1132, September.
- Bourguignon, F. & Morrisson, C., 1989. "Income Distribution, Development and Foreign Trade: A Cross-Sectional Analysis," DELTA Working Papers 89-05, DELTA (Ecole normale supérieure).
- Ianchovichina, Elena & Nicita, Alessandro & Soloaga, Isidro, 2001.
"Trade reform and household welfare : the case of Mexico,"
Policy Research Working Paper Series
2667, The World Bank.
- Budd, John W, 1993. "Changing Food Prices and Rural Welfare: A Nonparametric Examination of the Cote d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 587-603, April.
- Devarajan, Shantayanan & Rodrik, Dani, 1989. "Trade Liberalization in Developing Countries: Do Imperfect Competition and Scale Economies Matter?," American Economic Review, American Economic Association, vol. 79(2), pages 283-87, May.
- Mohamed Ali Marouani, 2000. "Ouverture commerciale et emploi. Un modèle d'équilibre général avec salaires d'efficience appliqué à la Tunisie," Revue Économique, Programme National Persée, vol. 51(3), pages 557-569.
- Nina Pavcnik, 2000.
"What Explains Skill Upgrading in Less Developed Countries?,"
NBER Working Papers
7846, National Bureau of Economic Research, Inc.
- Pavcnik, Nina, 2003. "What explains skill upgrading in less developed countries?," Journal of Development Economics, Elsevier, vol. 71(2), pages 311-328, August.
- Arndt, Channing, 2005. "The Doha Trade Round and Mozambique," Policy Research Working Paper Series 3717, The World Bank.
- Nicita, Alessandro, 2004. "Who benefited from trade liberalization in Mexico? Measuring the effects on household welfare," Policy Research Working Paper Series 3265, The World Bank.
- Devarajan, Shantayanan & Ghanem, Hafez & Thierfelder, Karen, 1997. "Economic Reform and Labor Unions: A General-Equilibrium Analysis Applied to Bangladesh and Indonesia," World Bank Economic Review, World Bank Group, vol. 11(1), pages 145-70, January.
- L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
- Julie Litchfield & Neil McCulloch & L. Alan Winters, 2003. "Agricultural Trade Liberalization and Poverty Dynamics in Three Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1285-1291.
- Joseph E. Stiglitz, 1985. "Economics of Information and the Theory of Economic Development," NBER Working Papers 1566, National Bureau of Economic Research, Inc.
- Decaluwe, Bernard & Nsengiyumva, Fabien, 1994. "Policy Impact under Credit Rationing: A Real and Financial CGE of Rwanda," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 3(2), pages 262-308, October.
- Francois, Joseph & Nordström, Håkan & Shiells, Clinton R., 1996. "Transition Dynamics and Trade Policy Reform in Developing Countries," CEPR Discussion Papers 1452, C.E.P.R. Discussion Papers.
- Deaton, Angus, 1989. "Rice Prices and Income Distribution in Thailand: A Non-parametric Analysis," Economic Journal, Royal Economic Society, vol. 99(395), pages 1-37, Supplemen.
- Bruce Greenwald & Joseph E. Stiglitz, 2006. "Helping Infant Economies Grow: Foundations of Trade Policies for Developing Countries," American Economic Review, American Economic Association, vol. 96(2), pages 141-146, May.
- Anderson, Edward, 2005. "Openness and inequality in developing countries: A review of theory and recent evidence," World Development, Elsevier, vol. 33(7), pages 1045-1063, July.
When requesting a correction, please mention this item's handle: RePEc:cdi:wpaper:898. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vincent Mazenod)
If references are entirely missing, you can add them using this form.