Trade Liberalisation and Poverty in Bangladesh: A General Equilibrium Approach

Bodrun Nahar and Mahinda Siriwardana ()

No 47629, 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia from Australian Agricultural and Resource Economics Society

Abstract: This paper uses a computable general equilibrium (CGE) model to investigate the impact on poverty of trade liberalisation in Bangladesh. The simulation results show that the complete removal of tariffs favours export oriented sectors in the economy. With trade liberalisation, rural and urban areas experience an overall reduction in poverty in the short run. However, a marginal increase in the poverty gap and poverty severity for urban areas is projected, implying that the poor become poorer in urban areas. Moreover, poverty incidences vary among various socio-economic groups. In the short run, poverty incidence increases for rural landless and urban illiterate and low-educated household groups. In contrast, the long run results highlight that trade liberalisation reduces absolute poverty for all groups both in rural and urban areas.

Keywords: International Relations/Trade; Food Security and Poverty (search for similar items in EconPapers)
Pages: 46
Date: 2009
New Economics Papers: this item is included in nep-cmp
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare09:47629

DOI: 10.22004/ag.econ.47629

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