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Trade Liberalization, Poverty and Efficient Equity

Author

Listed:
  • Harrison Glenn
  • Rutherford Thomas
  • Tarr David

Abstract

Even if trade liberalization results in aggregate welfare gains over all households, it is possible that the poorest households could lose. We illustrate two approaches to designing trade liberalization in Turkey which ensure that the poor will not lose. The first approach uses direct compensation to losers. The second approach uses limited policy reform, where exceptions to the across-the-board reform are chosen to meet the equity goal. In each case, we map out some of the efficiency costs of attaining these equity goals so as to inform policy makers about the least costly way of attaining them.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Harrison Glenn & Rutherford Thomas & Tarr David, 2010. "Trade Liberalization, Poverty and Efficient Equity," EcoMod2002 330800032, EcoMod.
    • Handle: RePEc:ekd:003308:330800032
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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