Distributional Effects of International Trade : Misconceptions about Losses and Gains
International trade increases efficiency but also redistributes income, thus creating winners and losers. To account for the total impact and calculate redistributive effects correctly and fully, the different channels of gains and losses must be m...
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| Format: | Brief |
| Language: | English |
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World Bank, Malaysia
2021
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| Online Access: | http://documents.worldbank.org/curated/en/532981614958627866/Distributional-Effects-of-International-Trade-Misconceptions-about-Losses-and-Gains http://hdl.handle.net/10986/35264 |
| Summary: | International trade increases efficiency
but also redistributes income, thus creating winners and
losers. To account for the total impact and calculate
redistributive effects correctly and fully, the different
channels of gains and losses must be measured precisely.
This Brief shows that measuring the gains is often much more
challenging than measuring the losses, generating
misconceptions and an overstatement of the adverse impacts
of international trade. To assess the effects of trade
shocks objectively, and to promote effective policy options,
policy makers must be aware of thelimitations in data and
methodology surrounding the research on the distributional
effects of international trade, and the misconceptions that ensue. |
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