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Trade liberalization, poverty and efficient equity

Glenn Harrison, Thomas F. Rutherford and David Tarr

Chapter 11 in Applied Trade Policy Modeling in 16 Countries:Insights and Impacts from World Bank CGE Based Projects, 2014, pp 255-286 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Even if trade liberalization results in aggregate welfare gains over all households, it is possible that the poorest households could lose. We illustrate two approaches to designing trade liberalization in Turkey which ensure that the poor will not lose. The first approach uses direct compensation to losers. The second approach uses limited policy reform, where exceptions to the across-the-board reform are chosen to meet the equity goal. In each case, we map out some of the efficiency costs of attaining these equity goals so as to inform policy makers about the least costly way of attaining them.

Keywords: International Trade Policy; Developing Countries; Computable General Equilibrium; World Bank; Regional Trade Policy; Services Liberalization; Foreign Direct Investment; Trade and Poverty (search for similar items in EconPapers)
Date: 2014
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Related works:
Working Paper: Trade Liberalization, Poverty and Efficient Equity (2010) Downloads
Journal Article: Trade liberalization, poverty and efficient equity (2003) Downloads
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