Does Trade Liberalization Promote Regional Disparities? Evidence from a Multiregional CGE Model of India

Athula Naranpanawa and Rashmi Arora

World Development, 2014, vol. 64, issue C, 339-349

Abstract: Over last few decades, there has been a growing interest among researchers in understanding the link between trade liberalization and regional disparities within the context of an individual country. In this study, we develop the first ever single-country multiregional Computable General Equilibrium (CGE) model for the Indian economy to investigate this linkage. Overall our results suggest that, in the short run, trade liberalization has a beneficial impact on the rich and fast-growing middle-income states and a marginal or negative impact on the poor states.

Keywords: trade liberalization; economic growth; regional disparities; Computable General Equilibrium model; South Asia; India (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:64:y:2014:i:c:p:339-349

DOI: 10.1016/j.worlddev.2014.06.001

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