Who Benefited from Trade Liberalization in Mexico? PDF Download

Author: Alessandro Nicita
Publisher: World Bank Publications
ISBN:
Category : Bienestar economico
Languages : en
Pages : 57

View

Book Description

Author: Alessandro Nicita
Publisher:
ISBN:
Category :
Languages : en
Pages : 57

View

Book Description
This study performs an ex-post analysis of the effects of the trade liberalization in Mexico between 1989 and 2000, taking into account regional differences in the Mexican economy. The effects of trade liberalization are first translated into changes in regional prices and wages. Those estimates are plugged into a farm-household model to estimate the effect on households' welfare.The findings suggest that trade liberalization has affected domestic prices and labor income differently both across income groups and geographically across the country, hence producing diverse outcomes on different households. Regarding prices, the results indicate that trade liberalization has lowered relative prices of most non-animal agricultural products and, while reducing the cost of consumption, has reduced households' agricultural income, widening the income gap between urban and rural areas. The findings also show that trade liberalization has had diverse effects on wage rates. Skilled workers, for which trade liberalization has produced an increase in wages, have benefited relative to unskilled workers. Wages of unskilled workers have in many regions decreased as a result of trade liberalization. Similar differences are found in the geographic distribution of the benefits of trade liberalization, with the states closest to the U.S. border gaining threefold more relative to the least developed states in the south. Therefore trade liberalization, although beneficial, has contributed to an increase in inequality between the south and the north of the country, urban and rural areas, and skilled and unskilled labor.From a poverty perspective, the trade liberalization that occurred between 1989 and 2000 has had the direct effect of reducing poverty by about 3 percent, therefore lifting approximately 3 million individuals out of poverty.This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to study the linkages between trade and poverty.

Author: Alessandro Nicita
Publisher:
ISBN:
Category : Electronic book
Languages : en
Pages :

View

Book Description

Author: Alessandro Nicita
Publisher: World Bank Publications
ISBN:
Category : Free trade
Languages : en
Pages : 32

View

Book Description
"Empirical evidence suggests that global trade reforms are unlikely to produce analogous results across countries, especially when analyzing their effect on poverty. This implies that the analysis of trade reform on social welfare cannot be generalized and needs to be conducted on a country by country basis. Moreover, even within the same country, geographic areas, households, and individuals are likely to be differentially affected, some of them benefiting more than others, while others might lose. With this in mind, the author provides a quantitative estimate of the effect on Mexican households from the implementation of the Doha development agenda. His analysis uses a two-step approach for which changes in prices and factors are estimated through a CGE model (GTAP) and then mapped into the welfare function of the household using household survey data. The empirical approach the author uses aims to measure the impact of Doha implementation by tracing changes in the household prices of goods and factors and their impact on household welfare, taking particular account the role of domestic price transmission. The findings suggest that multilateral trade liberalization alone would have a negative effect on Mexican households, even though very small. However, when the implementation of the Doha development agenda is complemented by domestic policies aimed at increasing productivity and improving domestic price transmission, the overall effects become positive. The results point to the importance of domestic price transmission in determining the variance of the effects across households"--Cover verso.

Author: Teena Marie Archuleta
Publisher:
ISBN:
Category : Households
Languages : en
Pages : 124

View

Book Description

Author: Ganesh Seshan
Publisher: World Bank Publications
ISBN:
Category : Cost and standard of living
Languages : en
Pages : 50

View

Book Description
"What is the effect of trade liberalization on households in developing countries? To what extent do the poor benefit when local markets are made more accommodative to international trade? The author empirically analyzes the distributional impact of trade policies on households in a low-income country with a large rural economy where labor markets are imperfect. The methodology in this paper, which can be applied to various types of labor market conditions, relates changes in prices attributed to trade reforms to changes in household welfare, income distribution, and poverty using theoretically consistent measures of producer and consumer welfare. The author investigates the effects on poverty and income distribution of national and international market integration in Vietnam's rice sector and fertilizer market between 1993 and 1998, a period of ongoing market reforms when the national poverty rate fell sharply from 59 percent to 37 percent. ... " -- Cover verso.

Author: Food and Agriculture Organization
Publisher: Food & Agriculture Org.
ISBN: 9789251053492
Category : Business & Economics
Languages : en
Pages : 216

View

Book Description
An estimated 1.2 billion people live on less than one dollar a day, and recent estimates indicate that over 850 million people lack sufficient food for an active healthy life, mostly in rural areas. This FAO report examines the links between agriculture, trade and poverty and considers how international agricultural trade and trade liberalisation affect the world's poor and food-insecure. Topics discussed include: trends and patterns in international agricultural trade, including trade in the least developed countries and within regions, and the role of supermarkets; policy issues including domestic support, export competition and market access; macroeconomic impacts of agricultural trade reforms for poverty reduction and pro-poor development objectives; food insecurity and trade liberalisation measures. The report recommends a twin-track approach which seeks to invest in human capital, institutions and infrastructure to enable the poor to take advantage of trade-related opportunities, while establishing safety nets to protect vulnerable members of society. This publication contains a mini CD-ROM of the "FAO Statistical Yearbook 2004 Vol. 1/1" in Arabic, Chinese, English, French and Spanish.

Author: Nora Lustig, coordinadora
Publisher: El Colegio de Mexico AC
ISBN:
Category :
Languages : en
Pages : 320

View

Book Description

Author: J. Humberto Lopez
Publisher: World Bank Publications
ISBN: 082138712X
Category : Business & Economics
Languages : en
Pages : 461

View

Book Description
The main message of the study is that Central America's ability to exploit the opportunities created by ongoing trade liberalization will depend on the ability of the region to implement a complementary policy agenda that creates an enabling policy and institutional environment.

Author: Marcelo Olarreaga
Publisher: Rowman & Littlefield
ISBN: 081573672X
Category : Business & Economics
Languages : en
Pages : 264

View

Book Description
A Brookings Institution Press and Yale Center for the Study of Globalization and Sciences-Po, Paris publication This thoughtful volume assesses the likely impact of reformed trade policies on the poorest of the poor—those on the bottom economic rungs in developing nations. The focus on a spectrum of poor nations across different regions provides some helpful and hopeful guidelines regarding the likely impacts of a global trade reform, agreed upon under the auspices of the World Trade Organization, as well as the impact of such reforms on economic development. In order to facilitate lesson-drawing across different regions, each country study utilizes a similar methodology. They combine information on trade policy at the product level with income and consumption data at the household level, thus capturing effects both on the macro level and in individual households where development policies ideally should improve day-to-day life. This uniformity of research approach across the country studies allows for a deeper and more robust comparison of results.