Free Trade Agreements, Poverty and Inequality in Central America

Luis Rivera and Hugo Rojas-Romagosa

No 331615, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: We use a top-down macro-micro approach to estimate the e§ects on poverty and income inequality of two major trade agreements in Central America: DR-CAFTA and EU-CAAA. We Örst employ a macro CGE application to assess the main changes in factor and goods prices associated with each trade agreement; and then combine this information with household surveys for Costa Rica and Nicaragua. Headcount poverty is reduced in both countries, although DR-CAFTA provides the largest decreases. Inequality in Costa Rica remains unchanged with both agreements, although it increases slightly in Nicaragua under the EU-CAAA.

Keywords: International Relations/Trade; Food Security and Poverty (search for similar items in EconPapers)
Pages: 27
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331615

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