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Trade liberalization, poverty and food security in India abstract: This paper attempts to assess the impact of trade

Author

Listed:
  • Manoj K. Panda

    () (Indira Gandhi Institute of Development Research)

  • A. Ganesh Kumar

    () (Indira Gandhi Institute of Development Research)

Abstract

This paper attempts to assess the impact of trade liberalization on growth, poverty, and food security in India with the help of a national level computable general equilibrium (CGE) model. It shows that GDP growth and income poverty reduction that might occur following trade liberalization need not necessarily result in an improvement in the food security / nutritional status of the poor. Evidence from simulations of (partial) trade reforms reflecting a possible Doha-like scenario show that the bottom 30 of the population in both rural and urban areas suffer a decline in calorie and protein intake, in contrast to the rest of the population, even as all households increase their intake of fats. Thus, the outcome on food security / status with regard to individual nutrients depends crucially on the movements in the relative prices of different commodities along with the change in income levels. These results show that trade policy analysis should consider indicators of food security in addition to overall growth and poverty traditionally considered in such studies.

Suggested Citation

  • Manoj K. Panda & A. Ganesh Kumar, 2008. "Trade liberalization, poverty and food security in India abstract: This paper attempts to assess the impact of trade," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-013, Indira Gandhi Institute of Development Research, Mumbai, India.
  • Handle: RePEc:ind:igiwpp:2008-013
    as

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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2008-013.pdf
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    References listed on IDEAS

    as
    1. R. Radhakrishna & C. Ravi, 1992. "Effects of Growth, Relative Price and Preferences on Food and Nutrition," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 27, pages 303-323.
    2. A. Ganesh-Kumar & Manoj K. Panda & Mary E. Burfisher, 2006. "Reforms in Indian agro-processing and agriculture sectors in the context of unilateral and multilateral trade agreements," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2006-011, Indira Gandhi Institute of Development Research, Mumbai, India.
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    More about this item

    Keywords

    Doha negotiations; India trade policy; Poverty; Food security; CGE model;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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