International Commodity Prices, Trade and Poverty in Uruguay

Carmen Estrades and María Terra

No 3209, Documentos de Trabajo (working papers) from Department of Economics - dECON

Abstract: Commodity prices have risen sharply since 2006. This may benefit developing countries specialized on primary exports, but poverty may increase. Uruguay is a net exporter of primary products and a net importer of oil. With the aim of analyzing the impact of soaring commodity prices and policy options, we apply a CGE model and microsimulations. A rise in food prices has a positive impact on the Uruguayan economy that is partially offset by the increase in oil prices. Even when poorest households’ income rises, their welfare falls because their consumption basket becomes more expensive. Poverty falls but extreme poverty increases. A policy of transfers to the poorest households seems to be the most efficient policy option to compensate poor households.

Keywords: International Commodity Prices; Poverty Policies; Labor Issues; International Trade; Computable General Equilibrium Model. (search for similar items in EconPapers)
JEL-codes: F11 F14 F16 Q17 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2009-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: International Commodity Prices, Trade and Poverty in Uruguay (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ude:wpaper:3209

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