Distributional effects of preferential and multilateral trade liberalization: the case of Paraguay

Elizabeth Casabianca ()

No 83, FIW Working Paper series from FIW

Abstract: In this paper I apply Porto (2006) to Paraguay using household level data. The aim is to assess the distributional impact of the preferential and multilateral trade liberalization in a small member country. I also follow Nicita (2009) assuming incomplete pass-through on prices of traded goods which in turn influence both household consumption and earnings of household members in the labour market. I estimate these effects highlighting the difference between the impact of the preferential trade agreement and the multilateral one. Finally, I am able to depict if and who trade integration has benefited.

Keywords: Household welfare; Paraguay; Pass-through; Trade and Poverty (search for similar items in EconPapers)
JEL-codes: D1 F1 J3 R2 (search for similar items in EconPapers)
Pages: 31
Date: 2012-05
New Economics Papers: this item is included in nep-int
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