Estimating the Poverty Impacts of Trade Liberalization

As a new round of World Trade Organization negotiations is being launched with greater emphasis on developing country participation, a body of literature is emerging which quantifies how international trade affects the poor in developing countries....

Full description

Bibliographic Details
Main Author: Reimer, Jeffrey J.
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
WTO
Online Access:http://documents.worldbank.org/curated/en/2002/02/1717451/estimating-poverty-impacts-trade-liberalization
http://hdl.handle.net/10986/15611
id okr-10986-15611
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic TRADE LIBERALIZATION
INTERNATIONAL TRADE
LITERATURE SURVEYS
CROSS-COUNTRY EXPERIENCE
REGRESSION ANALYSIS
COST OF LIVING
ECONOMETRIC MODELS OF POVERTY
HOUSEHOLD SURVEYS
HOUSEHOLD EXPENDITURE SURVEYS
GENERAL EQUILIBRIUM MODELS
NATIONAL ACCOUNTS
FACTOR MARKETS
POVERTY MEASUREMENT
SURVEY DATA
HOUSEHOLD INCOME
POVERTY ANALYSIS ABSOLUTE POVERTY
ADJUSTMENT COST
ADJUSTMENT COSTS
ADVERSE IMPACT
AGGREGATE LEVEL
AGRICULTURAL ECONOMICS
AGRICULTURAL SECTOR
AGRICULTURE
CASE STUDY
COMMODITIES
COMPARATIVE ADVANTAGE
CONSTANT ELASTICITY
CONSUMERS
CONSUMPTION DATA
CROSS- COUNTRY REGRESSION
CROSS-COUNTRY REGRESSION
DATA REQUIREMENTS
DATA SET
DATA SOURCES
DEMAND CURVE
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPING COUNTRY CONTEXT
DISTRIBUTIONAL EFFECTS
DIVIDENDS
ECONOMIC CHARACTERISTICS
ECONOMIC GROWTH
ECONOMIC SHOCKS
ECONOMIC STRUCTURE
ECONOMISTS
EDUCATIONAL ATTAINMENT
ELASTICITY
ELASTICITY OF SUBSTITUTION
EMPIRICAL RESULTS
EMPIRICAL STUDIES
EMPLOYMENT
ENDOGENOUS VARIABLES
EQUILIBRIUM
EQUILIBRIUM ANALYSES
EQUILIBRIUM VALUES
EXOGENOUS SHOCKS
EXPENDITURE DATA
EXPENDITURE INFORMATION
EXTERNAL SHOCKS
FACTOR INCOME
FINANCIAL CRISIS
FOREIGN EXCHANGE
FREE TRADE
FUNCTIONAL FORM
GENERAL EQUILIBRIUM ANALYSIS
GENERAL EQUILIBRIUM MODEL
GLOBAL TRADE
GROWTH RATES
HOUSEHOLD BEHAVIOR
HOUSEHOLD INCOME
HOUSEHOLD LEVEL
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HOUSEHOLDS
INCOME
INCOME DISTRIBUTION
INCOME EFFECT
INCOME HOUSEHOLDS
INCOME INEQUALITY
INCOME INFORMATION
INCOME LEVEL
INCOME LEVELS
INCOME SHARE
INCOME SOURCES
INCOMES
INDIVIDUAL LEVEL
INEQUALITY VARIABLES
INFORMAL ACTIVITIES
INFORMAL SECTOR
INFORMAL SECTORS
INTERMEDIATE INPUTS
INTERNATIONAL TRADE
LABOR DEMAND
LABOR MARKET
LABOR MARKETS
LABOR SUPPLY
LIVING STANDARDS
LOW INCOME
MARKET LIBERALIZATION
MEASURING POVERTY
METHODOLOGICAL APPROACHES
MULTIPLIERS
NATIONAL LEVEL
NON-AGRICULTURAL ACTIVITIES
POLICY ANALYSIS
POLICY OPTIONS
POLICY RESEARCH
POOR
POOR HOUSEHOLDS
POSITIVE EFFECT
POVERTY ALLEVIATION
POVERTY COMPARISONS
POVERTY INCREASES
POVERTY INDEX
POVERTY ISSUES
POVERTY LINE
POVERTY MEASURES
POVERTY REDUCTION
PRICE CHANGES
PRODUCERS
PRODUCTIVE ACTIVITY
PRODUCTIVITY
REAL WAGE
REDISTRIBUTIVE EFFECTS
REGRESSION ANALYSIS
REGRESSION APPROACH
REGRESSION RESULTS
RELATIVE IMPACT
RELATIVE IMPORTANCE
RELATIVE INCOME
RELATIVE PRICES
RURAL
RURAL AREAS
RURAL HOUSEHOLDS
RURAL POOR
SAVINGS
SENSITIVITY ANALYSIS
SHARECROPPING
STATISTICAL ANALYSIS
SUBSISTENCE FARMERS
TERMS OF TRADE
TIME FRAME
TRADE BALANCE
TRADE LIBERALIZATION
TRADE POLICIES
TRADE TAXES
URBAN
URBAN AREAS
URBAN ONES
URBAN POOR
WAGE RATES
WAGES
WEALTH
WORLD TRADE ORGANIZATION
WTO
spellingShingle TRADE LIBERALIZATION
INTERNATIONAL TRADE
LITERATURE SURVEYS
CROSS-COUNTRY EXPERIENCE
REGRESSION ANALYSIS
COST OF LIVING
ECONOMETRIC MODELS OF POVERTY
HOUSEHOLD SURVEYS
HOUSEHOLD EXPENDITURE SURVEYS
GENERAL EQUILIBRIUM MODELS
NATIONAL ACCOUNTS
FACTOR MARKETS
POVERTY MEASUREMENT
SURVEY DATA
HOUSEHOLD INCOME
POVERTY ANALYSIS ABSOLUTE POVERTY
ADJUSTMENT COST
ADJUSTMENT COSTS
ADVERSE IMPACT
AGGREGATE LEVEL
AGRICULTURAL ECONOMICS
AGRICULTURAL SECTOR
AGRICULTURE
CASE STUDY
COMMODITIES
COMPARATIVE ADVANTAGE
CONSTANT ELASTICITY
CONSUMERS
CONSUMPTION DATA
CROSS- COUNTRY REGRESSION
CROSS-COUNTRY REGRESSION
DATA REQUIREMENTS
DATA SET
DATA SOURCES
DEMAND CURVE
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPING COUNTRY CONTEXT
DISTRIBUTIONAL EFFECTS
DIVIDENDS
ECONOMIC CHARACTERISTICS
ECONOMIC GROWTH
ECONOMIC SHOCKS
ECONOMIC STRUCTURE
ECONOMISTS
EDUCATIONAL ATTAINMENT
ELASTICITY
ELASTICITY OF SUBSTITUTION
EMPIRICAL RESULTS
EMPIRICAL STUDIES
EMPLOYMENT
ENDOGENOUS VARIABLES
EQUILIBRIUM
EQUILIBRIUM ANALYSES
EQUILIBRIUM VALUES
EXOGENOUS SHOCKS
EXPENDITURE DATA
EXPENDITURE INFORMATION
EXTERNAL SHOCKS
FACTOR INCOME
FINANCIAL CRISIS
FOREIGN EXCHANGE
FREE TRADE
FUNCTIONAL FORM
GENERAL EQUILIBRIUM ANALYSIS
GENERAL EQUILIBRIUM MODEL
GLOBAL TRADE
GROWTH RATES
HOUSEHOLD BEHAVIOR
HOUSEHOLD INCOME
HOUSEHOLD LEVEL
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HOUSEHOLDS
INCOME
INCOME DISTRIBUTION
INCOME EFFECT
INCOME HOUSEHOLDS
INCOME INEQUALITY
INCOME INFORMATION
INCOME LEVEL
INCOME LEVELS
INCOME SHARE
INCOME SOURCES
INCOMES
INDIVIDUAL LEVEL
INEQUALITY VARIABLES
INFORMAL ACTIVITIES
INFORMAL SECTOR
INFORMAL SECTORS
INTERMEDIATE INPUTS
INTERNATIONAL TRADE
LABOR DEMAND
LABOR MARKET
LABOR MARKETS
LABOR SUPPLY
LIVING STANDARDS
LOW INCOME
MARKET LIBERALIZATION
MEASURING POVERTY
METHODOLOGICAL APPROACHES
MULTIPLIERS
NATIONAL LEVEL
NON-AGRICULTURAL ACTIVITIES
POLICY ANALYSIS
POLICY OPTIONS
POLICY RESEARCH
POOR
POOR HOUSEHOLDS
POSITIVE EFFECT
POVERTY ALLEVIATION
POVERTY COMPARISONS
POVERTY INCREASES
POVERTY INDEX
POVERTY ISSUES
POVERTY LINE
POVERTY MEASURES
POVERTY REDUCTION
PRICE CHANGES
PRODUCERS
PRODUCTIVE ACTIVITY
PRODUCTIVITY
REAL WAGE
REDISTRIBUTIVE EFFECTS
REGRESSION ANALYSIS
REGRESSION APPROACH
REGRESSION RESULTS
RELATIVE IMPACT
RELATIVE IMPORTANCE
RELATIVE INCOME
RELATIVE PRICES
RURAL
RURAL AREAS
RURAL HOUSEHOLDS
RURAL POOR
SAVINGS
SENSITIVITY ANALYSIS
SHARECROPPING
STATISTICAL ANALYSIS
SUBSISTENCE FARMERS
TERMS OF TRADE
TIME FRAME
TRADE BALANCE
TRADE LIBERALIZATION
TRADE POLICIES
TRADE TAXES
URBAN
URBAN AREAS
URBAN ONES
URBAN POOR
WAGE RATES
WAGES
WEALTH
WORLD TRADE ORGANIZATION
WTO
Reimer, Jeffrey J.
Estimating the Poverty Impacts of Trade Liberalization
relation Policy Research Working Paper;No. 2790
description As a new round of World Trade Organization negotiations is being launched with greater emphasis on developing country participation, a body of literature is emerging which quantifies how international trade affects the poor in developing countries. In this survey of the literature, the author summarizes and classifies 35 trade and poverty studies into four methodological categories; cross-country regression, partial-equilibrium and cost-of-living analysis, general-equilibrium simulation, and micro-macro synthesis. These categories include a broad range of methodologies in current use. The continuum of approaches is bounded on one end by econometric analysis of household expenditure data, which is the traditional domain of poverty specialists, and sometimes labeled the "bottoms-up" approach. On the other end of the continuum are computable general equilibrium models based on national accounts data, or what might be called the "top-down" approach. Another feature of several recent trade and poverty studies--and one of the primary conclusions to emerge from the October 2000 "Conference on Poverty and the International Economy," sponsored by Globkom and the World Bank--is the recognition that factor markets are perhaps the most important link between trade and poverty, since households tend to be much more specialized in income than they are in consumption. Meanwhile, survet data on the income sources of developing country households has become increasingly available. As a result, this survey gives particular emphasis to the means by which studies address factor market links between trade and poverty. The general conclusion of the author's survey is that any analysis of trade and poverty needs to be informed by both the bottom-up and top-down perspectives. Indeed, recent "two-step" micro-macro studies sequentially link these two types of frameworks, such that general equilibrium mechanisms are incorporated along with detailed household survey information. Another methodology in a similar spirit and also increasingly used involves incorporating large numbers of surveyed households into a general-equilibrium simulation model. Although most of these studies have so far been limited to a single region, these approaches can be readily adapted for multi-region modeling so that trade and poverty comparisons can be made across countries within a consistent framework.
format Publications & Research :: Policy Research Working Paper
author Reimer, Jeffrey J.
author_facet Reimer, Jeffrey J.
author_sort Reimer, Jeffrey J.
title Estimating the Poverty Impacts of Trade Liberalization
title_short Estimating the Poverty Impacts of Trade Liberalization
title_full Estimating the Poverty Impacts of Trade Liberalization
title_fullStr Estimating the Poverty Impacts of Trade Liberalization
title_full_unstemmed Estimating the Poverty Impacts of Trade Liberalization
title_sort estimating the poverty impacts of trade liberalization
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2002/02/1717451/estimating-poverty-impacts-trade-liberalization
http://hdl.handle.net/10986/15611
_version_ 1764429701268373504
spelling okr-10986-156112021-04-23T14:03:19Z Estimating the Poverty Impacts of Trade Liberalization Reimer, Jeffrey J. TRADE LIBERALIZATION INTERNATIONAL TRADE LITERATURE SURVEYS CROSS-COUNTRY EXPERIENCE REGRESSION ANALYSIS COST OF LIVING ECONOMETRIC MODELS OF POVERTY HOUSEHOLD SURVEYS HOUSEHOLD EXPENDITURE SURVEYS GENERAL EQUILIBRIUM MODELS NATIONAL ACCOUNTS FACTOR MARKETS POVERTY MEASUREMENT SURVEY DATA HOUSEHOLD INCOME POVERTY ANALYSIS ABSOLUTE POVERTY ADJUSTMENT COST ADJUSTMENT COSTS ADVERSE IMPACT AGGREGATE LEVEL AGRICULTURAL ECONOMICS AGRICULTURAL SECTOR AGRICULTURE CASE STUDY COMMODITIES COMPARATIVE ADVANTAGE CONSTANT ELASTICITY CONSUMERS CONSUMPTION DATA CROSS- COUNTRY REGRESSION CROSS-COUNTRY REGRESSION DATA REQUIREMENTS DATA SET DATA SOURCES DEMAND CURVE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING COUNTRY CONTEXT DISTRIBUTIONAL EFFECTS DIVIDENDS ECONOMIC CHARACTERISTICS ECONOMIC GROWTH ECONOMIC SHOCKS ECONOMIC STRUCTURE ECONOMISTS EDUCATIONAL ATTAINMENT ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL RESULTS EMPIRICAL STUDIES EMPLOYMENT ENDOGENOUS VARIABLES EQUILIBRIUM EQUILIBRIUM ANALYSES EQUILIBRIUM VALUES EXOGENOUS SHOCKS EXPENDITURE DATA EXPENDITURE INFORMATION EXTERNAL SHOCKS FACTOR INCOME FINANCIAL CRISIS FOREIGN EXCHANGE FREE TRADE FUNCTIONAL FORM GENERAL EQUILIBRIUM ANALYSIS GENERAL EQUILIBRIUM MODEL GLOBAL TRADE GROWTH RATES HOUSEHOLD BEHAVIOR HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLDS INCOME INCOME DISTRIBUTION INCOME EFFECT INCOME HOUSEHOLDS INCOME INEQUALITY INCOME INFORMATION INCOME LEVEL INCOME LEVELS INCOME SHARE INCOME SOURCES INCOMES INDIVIDUAL LEVEL INEQUALITY VARIABLES INFORMAL ACTIVITIES INFORMAL SECTOR INFORMAL SECTORS INTERMEDIATE INPUTS INTERNATIONAL TRADE LABOR DEMAND LABOR MARKET LABOR MARKETS LABOR SUPPLY LIVING STANDARDS LOW INCOME MARKET LIBERALIZATION MEASURING POVERTY METHODOLOGICAL APPROACHES MULTIPLIERS NATIONAL LEVEL NON-AGRICULTURAL ACTIVITIES POLICY ANALYSIS POLICY OPTIONS POLICY RESEARCH POOR POOR HOUSEHOLDS POSITIVE EFFECT POVERTY ALLEVIATION POVERTY COMPARISONS POVERTY INCREASES POVERTY INDEX POVERTY ISSUES POVERTY LINE POVERTY MEASURES POVERTY REDUCTION PRICE CHANGES PRODUCERS PRODUCTIVE ACTIVITY PRODUCTIVITY REAL WAGE REDISTRIBUTIVE EFFECTS REGRESSION ANALYSIS REGRESSION APPROACH REGRESSION RESULTS RELATIVE IMPACT RELATIVE IMPORTANCE RELATIVE INCOME RELATIVE PRICES RURAL RURAL AREAS RURAL HOUSEHOLDS RURAL POOR SAVINGS SENSITIVITY ANALYSIS SHARECROPPING STATISTICAL ANALYSIS SUBSISTENCE FARMERS TERMS OF TRADE TIME FRAME TRADE BALANCE TRADE LIBERALIZATION TRADE POLICIES TRADE TAXES URBAN URBAN AREAS URBAN ONES URBAN POOR WAGE RATES WAGES WEALTH WORLD TRADE ORGANIZATION WTO As a new round of World Trade Organization negotiations is being launched with greater emphasis on developing country participation, a body of literature is emerging which quantifies how international trade affects the poor in developing countries. In this survey of the literature, the author summarizes and classifies 35 trade and poverty studies into four methodological categories; cross-country regression, partial-equilibrium and cost-of-living analysis, general-equilibrium simulation, and micro-macro synthesis. These categories include a broad range of methodologies in current use. The continuum of approaches is bounded on one end by econometric analysis of household expenditure data, which is the traditional domain of poverty specialists, and sometimes labeled the "bottoms-up" approach. On the other end of the continuum are computable general equilibrium models based on national accounts data, or what might be called the "top-down" approach. Another feature of several recent trade and poverty studies--and one of the primary conclusions to emerge from the October 2000 "Conference on Poverty and the International Economy," sponsored by Globkom and the World Bank--is the recognition that factor markets are perhaps the most important link between trade and poverty, since households tend to be much more specialized in income than they are in consumption. Meanwhile, survet data on the income sources of developing country households has become increasingly available. As a result, this survey gives particular emphasis to the means by which studies address factor market links between trade and poverty. The general conclusion of the author's survey is that any analysis of trade and poverty needs to be informed by both the bottom-up and top-down perspectives. Indeed, recent "two-step" micro-macro studies sequentially link these two types of frameworks, such that general equilibrium mechanisms are incorporated along with detailed household survey information. Another methodology in a similar spirit and also increasingly used involves incorporating large numbers of surveyed households into a general-equilibrium simulation model. Although most of these studies have so far been limited to a single region, these approaches can be readily adapted for multi-region modeling so that trade and poverty comparisons can be made across countries within a consistent framework. 2013-09-04T19:41:40Z 2013-09-04T19:41:40Z 2002-02 http://documents.worldbank.org/curated/en/2002/02/1717451/estimating-poverty-impacts-trade-liberalization http://hdl.handle.net/10986/15611 English en_US Policy Research Working Paper;No. 2790 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research