How much will trade liberalization help the poor?: comparing global trade models
Trade liberalization is expected to act positively on development and poverty reduction... The traditional argument in favor of a positive relationship between liberalization and poverty reduction focuses on... [key] linkages. A large proportion of poor people work in the agricultural sector, where...
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| Format: | Brief |
| Language: | Inglés Español |
| Published: |
International Food Policy Research Institute
2006
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/160436 |
| _version_ | 1855520729759481856 |
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| author | Bouët, Antoine |
| author_browse | Bouët, Antoine |
| author_facet | Bouët, Antoine |
| author_sort | Bouët, Antoine |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Trade liberalization is expected to act positively on development and poverty reduction... The traditional argument in favor of a positive relationship between liberalization and poverty reduction focuses on... [key] linkages. A large proportion of poor people work in the agricultural sector, where trade distortions are particularly high. Liberalization could lead to higher world agricultural prices and raise activity and remuneration in this sector in developing countries. The same beneficial outcome could occur in the textile and apparel sectors, where protection remains high and developing countries have a comparative advantage. But openness can also have negative effects. First, government transfers can shrink as liberalization cuts the government’s receipts of trade-related taxes. Second, terms of trade can deteriorate as liberalization affects world prices. Third, liberalization can impose adjustment costs and raise short-run risk owing to competition from imports and reallocation of productive factors. As a consequence, it is uncertain how much trade liberalization would reduce poverty, and many studies have attempted to assess the size of these benefits. The main empirical tool for this work is the multicountry computable general equilibrium (CGE) model—a sophisticated and complex tool of analysis that often appears as a “black box” from which results are difficult to understand. |
| format | Brief |
| id | CGSpace160436 |
| institution | CGIAR Consortium |
| language | Inglés Español |
| publishDate | 2006 |
| publishDateRange | 2006 |
| publishDateSort | 2006 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1604362025-11-06T04:25:52Z How much will trade liberalization help the poor?: comparing global trade models Bouët, Antoine trade liberalization development poverty reduction agricultural sector agricultural prices imports terms of trade state intervention computable general equilibrium models Trade liberalization is expected to act positively on development and poverty reduction... The traditional argument in favor of a positive relationship between liberalization and poverty reduction focuses on... [key] linkages. A large proportion of poor people work in the agricultural sector, where trade distortions are particularly high. Liberalization could lead to higher world agricultural prices and raise activity and remuneration in this sector in developing countries. The same beneficial outcome could occur in the textile and apparel sectors, where protection remains high and developing countries have a comparative advantage. But openness can also have negative effects. First, government transfers can shrink as liberalization cuts the government’s receipts of trade-related taxes. Second, terms of trade can deteriorate as liberalization affects world prices. Third, liberalization can impose adjustment costs and raise short-run risk owing to competition from imports and reallocation of productive factors. As a consequence, it is uncertain how much trade liberalization would reduce poverty, and many studies have attempted to assess the size of these benefits. The main empirical tool for this work is the multicountry computable general equilibrium (CGE) model—a sophisticated and complex tool of analysis that often appears as a “black box” from which results are difficult to understand. 2006 2024-11-21T09:50:47Z 2024-11-21T09:50:47Z Brief https://hdl.handle.net/10568/160436 en spa Open Access application/pdf application/pdf International Food Policy Research Institute Bouët, Antoine. How much will trade liberalization help the poor? comparing global trade models. Research Brief. 5. International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/Researchbrief05. |
| spellingShingle | trade liberalization development poverty reduction agricultural sector agricultural prices imports terms of trade state intervention computable general equilibrium models Bouët, Antoine How much will trade liberalization help the poor?: comparing global trade models |
| title | How much will trade liberalization help the poor?: comparing global trade models |
| title_full | How much will trade liberalization help the poor?: comparing global trade models |
| title_fullStr | How much will trade liberalization help the poor?: comparing global trade models |
| title_full_unstemmed | How much will trade liberalization help the poor?: comparing global trade models |
| title_short | How much will trade liberalization help the poor?: comparing global trade models |
| title_sort | how much will trade liberalization help the poor comparing global trade models |
| topic | trade liberalization development poverty reduction agricultural sector agricultural prices imports terms of trade state intervention computable general equilibrium models |
| url | https://hdl.handle.net/10568/160436 |
| work_keys_str_mv | AT bouetantoine howmuchwilltradeliberalizationhelpthepoorcomparingglobaltrademodels |