Can trade liberalization lead to an increase in poverty in Central America?

Robert Moore

MPRA Paper from University Library of Munich, Germany

Abstract: A stylized Central American trade model is used to demonstrate that trade liberalization can cause an increase in poverty. The paper used a straight-forward 3x3 small-country trade model. In the general case the 3x3 model will not yield signable results. In this paper constraints that are consistent with stylizations for Central American economies provide enough structure to give signable results for the effects of trade policy changes on factor prices. The stylized economy is modeled to have a manufacturing sector, an agricultural export sector, and a traditional subsistence agricultural sector. This 3x3 model is much more appropriate for analysis of trade policy in Central America than the standard 2x2 model.

JEL-codes: F14 F16 O15 (search for similar items in EconPapers)
Date: 1990-12
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Economic Development 2.15 (19(1990): pp. 83-92

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/10178/1/MPRA_paper_10178.pdf original version (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:pra:mprapa:10178

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().