Trade options for Latin America. A Poverty Assessment Using Macro-Micro Linkages

Maurizio Bussolo, Dominique van der Mensbrugghe and Jann Lay

No 331405, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: Linking a global computable general equilibrium model with household surveys of Brazil, Mexico, Colombia and Chile, this paper estimates the initial impacts on the poor of regional and multilateral trade liberalization scenarios. This approach combines the advantages of using general equilibrium consistent changes in factor and good prices with the detailed information on household endowments and preferences provided by the surveys. Furthermore this methodology allows to decompose the total effect on poverty into growth and inequality components. Results show that due to their different initial positions in terms of trade protection, economic structure and poverty levels, the impacts on poverty are quite dissimilar across the four countries studied here, and that is also the case when growth and distributional effects are considered separately. The detailed analysis shows that, even when the aggregate poverty effects are closer, these result from diverse effects of opposite sign that can only be captured by accounting for the full heterogeneity in the household data. Such a richer analysis of the poverty impact may have implications for compensatory policy measures and even for the design of ultimately more successful trade reforms.

Keywords: International Relations/Trade; Food Security and Poverty (search for similar items in EconPapers)
Pages: 31
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/331405/files/2222.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:ags:pugtwp:331405

Access Statistics for this paper

More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().