EconPapers    
Economics at your fingertips  
 

Case Study: Welfare and poverty impacts of trade liberalization: a dynamic CGE microsimulation analysis

Selim Raihan ()

International Journal of Microsimulation, 2010, vol. 3, issue 1, 123-126

Abstract: This case study focuses on the application of a dynamic top-down CGE microsimulation model of the Bangladesh economy. Specifically, this paper examines the macroeconomic, poverty and welfare impacts of complete and unilateral domestic trade liberalization in Bangladesh over the last two decades. Two different poverty lines for rural and urban households are used, which are endogenously determined by the model taking into account the rural and urban Consumer Price Indices (CPIs). The results suggests marked differences between the short and long run impacts of tariff liberalization. In the short run there are possibilities of reduced welfare and increased poverty. However, in the long run, resources are reallocated towards the more efficient and expanding sectors, generating positive outcomes in terms of welfare gains and poverty reduction.

Keywords: trade liberalization; CPI; top-down; CGE; Bangladesh (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_35.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ijm:journl:v:3:y:2010:i:1:p:123-126

Access Statistics for this article

International Journal of Microsimulation is currently edited by Matteo Richiardi

More articles in International Journal of Microsimulation from International Microsimulation Association
Bibliographic data for series maintained by Jinjing Li ().

 
Page updated 2022-09-11
Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:123-126