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International Market Access and Poverty in Argentina

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  • Guido Porto

    (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP)

Abstract

This paper examines the impact of access to international agro-manufacture markets on poverty in Argentina. Estimates from the literature suggest that expanded market access would cause the international price of Argentine exports of agro-manufactures to increase by between 8.7% and 15.9%. I explore two poverty effects caused by these prices changes: on food expenditure and on wages. Using a household budget survey, I estimate the impact of higher food prices on the Argentine poverty line. Using a labor force survey, I estimate the responses of wages to changes in export prices. My main finding is that market access would cause poverty to decline in Argentina. From a national head count of 29.26%, the poverty rate would decline to between 28.28% and 28.80%. This means that between 161,000 and 343,000 Argentines would be moved out of poverty. Copyright © 2010 Blackwell Publishing Ltd.
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Suggested Citation

  • Guido Porto, 2010. "International Market Access and Poverty in Argentina," CEDLAS, Working Papers 0096, CEDLAS, Universidad Nacional de La Plata.
  • Handle: RePEc:dls:wpaper:0096
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    File URL: http://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas96_3.pdf
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    References listed on IDEAS

    as
    1. Porto, Guido G., 2006. "Using survey data to assess the distributional effects of trade policy," Journal of International Economics, Elsevier, vol. 70(1), pages 140-160, September.
    2. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications, The World Bank, number 6889.
    3. Bernard Hoekman & Francis Ng & Marcelo Olarreaga, 2004. "Agricultural Tariffs or Subsidies: Which Are More Important for Developing Economies?," World Bank Economic Review, World Bank Group, vol. 18(2), pages 175-204.
    4. Ravallion, Martin, 1990. "Rural Welfare Effects of Food Price Changes under Induced Wage Responses: Theory and Evidence for Bangladesh," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 574-585, July.
    5. Kloek, T, 1981. "OLS Estimation in a Model Where a Microvariable Is Explained by Aggregates and Contemporaneous Disturbances Are Equicorrelated," Econometrica, Econometric Society, vol. 49(1), pages 205-207, January.
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    Cited by:

    1. Nicita, Alessandro & Olarreaga, Marcelo & Porto, Guido, 2014. "Pro-poor trade policy in Sub-Saharan Africa," Journal of International Economics, Elsevier, vol. 92(2), pages 252-265.
    2. Ujjayant Chakravorty & Marie-Hélène Hubert & Beyza Ural Marchand, 2012. "Food for Fuel: The Effect of the U.S. Biofuel Mandate on Poverty in India," CESifo Working Paper Series 3910, CESifo Group Munich.
    3. L. Alan Winters & Antonio Martuscelli, 2014. "Trade Liberalization and Poverty: What Have We Learned in a Decade?," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 493-512, October.
    4. Moncarz, Pedro & Barone, Sergio & Calfat, Germán & Descalzi, Ricardo, 2014. "Poverty impacts of changes in the price of agricultural commodities: recent evidence for Argentina," IOB Working Papers 2014.09, Universiteit Antwerpen, Institute of Development Policy (IOB).
    5. Ujjayant Chakravorty & Marie-Hélène Hubert & Beyza Ural Marchand, 2016. "The effect of the US biofuels mandate on poverty in India," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2016-13, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

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