Trade Liberalization and Poverty: Lessons from Asia and Africa

John Cockburn, Bernard Decaluwé and Véronique Robichaud

No 331544, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: We bring together the lessons drawn from the computable general equilibrium (CGE) analysis of the impacts of trade liberalization on poverty in seven Asian and African countries: Bangladesh, Benin, India, Nepal, Pakistan, the Philippines and Senegal. We compare and contrast the results in these countries, explaining where there are similarities and why there are differences. Particular attention is paid to identifying how the specific characteristics of each country – initial tariff structure, trade patterns, relative factor endowments, production patterns, income sources and consumption patterns of the poor, etc. – modify the results. Conclusions are then drawn with respect to the key factors in managing trade liberalization and designing appropriate accompanying measures. Results show that trade liberalization has little but positive impact on welfare and poverty. Overall, industrial sectors benefit - relatively to agriculture - from trade liberalization and so are urban households relatively to their rural counterparts.

Keywords: International Relations/Trade; Food Security and Poverty (search for similar items in EconPapers)
Pages: 22
Date: 2006
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Chapter: Trade liberalization and poverty - lessons from Asia and Africa (2007)
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