The Price Effect of Tariff Liberalization: Measuring the Impact on Household Welfare
Trade policy literature has for many years emphasized open policies positive impact on economic growth and development. While these results generally hold when measured on averages, empirical evidence suggests that trade liberalization is unlikely to produce beneficial results across all households....
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| Format: | Journal Article |
| Language: | EN |
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2012
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| Online Access: | http://hdl.handle.net/10986/4813 |
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okr-10986-4813 |
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okr-10986-48132021-04-23T14:02:19Z The Price Effect of Tariff Liberalization: Measuring the Impact on Household Welfare Nicita, Alessandro Personal Income, Wealth, and Their Distributions D310 Trade Policy International Trade Organizations F130 Economic Development: Human Resources Human Development Income Distribution Migration O150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 Trade policy literature has for many years emphasized open policies positive impact on economic growth and development. While these results generally hold when measured on averages, empirical evidence suggests that trade liberalization is unlikely to produce beneficial results across all households. This study adds to the literature by providing an analysis of the distributive effects of tariff liberalization in Mexico. The paper examines the effect of tariff liberalization from the perspective of households both as consumers and factor owners allowing for imperfect domestic price transmission. The results indicate the overall positive effect of tariff liberalization masks significant differences in the distribution of gains both across income levels and across geographic regions. Richer households are found to have gained relatively more. Urban areas, as well as Mexican states closest to the United States border, are also found to be larger beneficiaries while southernmost states have been largely bypassed by the effects of tariff liberalization. Those results can be explained not only in relation to the different endowments of the households, but also by the diverse effects on local prices that has resulted from Mexican trade liberalization. 2012-03-30T07:29:52Z 2012-03-30T07:29:52Z 2009 Journal Article Journal of Development Economics 03043878 http://hdl.handle.net/10986/4813 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
EN |
| topic |
Personal Income, Wealth, and Their Distributions D310 Trade Policy International Trade Organizations F130 Economic Development: Human Resources Human Development Income Distribution Migration O150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 |
| spellingShingle |
Personal Income, Wealth, and Their Distributions D310 Trade Policy International Trade Organizations F130 Economic Development: Human Resources Human Development Income Distribution Migration O150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 Nicita, Alessandro The Price Effect of Tariff Liberalization: Measuring the Impact on Household Welfare |
| geographic_facet |
Mexico |
| relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
| description |
Trade policy literature has for many years emphasized open policies positive impact on economic growth and development. While these results generally hold when measured on averages, empirical evidence suggests that trade liberalization is unlikely to produce beneficial results across all households. This study adds to the literature by providing an analysis of the distributive effects of tariff liberalization in Mexico. The paper examines the effect of tariff liberalization from the perspective of households both as consumers and factor owners allowing for imperfect domestic price transmission. The results indicate the overall positive effect of tariff liberalization masks significant differences in the distribution of gains both across income levels and across geographic regions. Richer households are found to have gained relatively more. Urban areas, as well as Mexican states closest to the United States border, are also found to be larger beneficiaries while southernmost states have been largely bypassed by the effects of tariff liberalization. Those results can be explained not only in relation to the different endowments of the households, but also by the diverse effects on local prices that has resulted from Mexican trade liberalization. |
| format |
Journal Article |
| author |
Nicita, Alessandro |
| author_facet |
Nicita, Alessandro |
| author_sort |
Nicita, Alessandro |
| title |
The Price Effect of Tariff Liberalization: Measuring the Impact on Household Welfare |
| title_short |
The Price Effect of Tariff Liberalization: Measuring the Impact on Household Welfare |
| title_full |
The Price Effect of Tariff Liberalization: Measuring the Impact on Household Welfare |
| title_fullStr |
The Price Effect of Tariff Liberalization: Measuring the Impact on Household Welfare |
| title_full_unstemmed |
The Price Effect of Tariff Liberalization: Measuring the Impact on Household Welfare |
| title_sort |
price effect of tariff liberalization: measuring the impact on household welfare |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/4813 |
| _version_ |
1764392860309782528 |