Trade Liberalisation and Poverty in Nepal: A Computable General Equilibrium Micro Simulation Analysis

John Cockburn

No 2002-11, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: Concern is growing regarding the poverty impacts of trade liberalization. The strong general equilibrium effects of trade liberalization can only be properly analysed in a CGE model. However, the aggregate nature of CGE models is not suited to detailed poverty analysis. We bridge this gap by constructing a CGE model that explicitly models all households from a nationally representative household survey. We find complex in come and consumption effects that would be missed in standard CGE models. Urban poverty falls and rural poverty increases as initial tariffs were highest for agriculture. Impacts increase with income level, resulting in rising income inequality.

Keywords: computable general equilibrium modelling; international trade; poverty; Nepal (search for similar items in EconPapers)
JEL-codes: D33 D58 E27 F13 F14 I32 O15 O53 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (74)

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Related works:
Working Paper: Trade Liberalisation and Poverty in Nepal: A Computable General Equilibrium Micro Simulation Analysis (2006)
Working Paper: Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis (2004)
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