International Commodity Prices, Trade and Poverty in Uruguay
Commodity prices have risen sharply since 2006. This may benefit developing countries specialized on primary exports, but poverty may increase. Uruguay is a net exporter of primary products and a net importer of oil. With the aim of analyzing the impact of soaring commodity prices and policy options, we apply a CGE model and microsimulations. A rise in food prices has a positive impact on the Uruguayan economy that is partially offset by the increase in oil prices. Even when poorest households’ income rises, their welfare falls because their consumption basket becomes more expensive. Poverty falls but extreme poverty increases. A policy of transfers to the poorest households seems to be the most efficient policy option to compensate poor households.
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- Maria Inés Terra & Marisa Bucheli & Silvia Laens & Carmen Estrades, 2005.
"The effects of increasing openness and integration to the MERCOSUR on the Uruguayan labour market. A CGE modeling analysis,"
Documentos de Trabajo (working papers)
1205, Department of Economics - dECON.
- Maria Ines Terra & Marisa Bucheli & Silvia Laens & Carmen Estrades, 2006. "The Effects of Increasing Openness and Integration to the MERCOSUR on the Uruguayan Labour Market: a CGE Modelling Analysis," Working Papers MPIA 2006-06, PEP-MPIA.
- Thomas Hertel & Jeffrey Reimer, 2005.
"Predicting the poverty impacts of trade reform,"
The Journal of International Trade & Economic Development,
Taylor & Francis Journals, vol. 14(4), pages 377-405.
- Headey, Derek & Fan, Shenggen, 2008.
"Anatomy of a crisis: The causes and consequences of surging food prices,"
IFPRI discussion papers
831, International Food Policy Research Institute (IFPRI).
- Derek Headey & Shenggen Fan, 2008. "Anatomy of a crisis: the causes and consequences of surging food prices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 375-391, November.
- Mitchell, Donald, 2008. "A note on rising food prices," Policy Research Working Paper Series 4682, The World Bank.
- Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
- Carmen Estrades & María Inés Terra, 2007. "Policies against informality in segmented labour markets: a general equilibrium analysis applied to Uruguay," Documentos de Trabajo (working papers) 0408, Department of Economics - dECON.
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