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Author: Alessandro Nicita
Publisher: World Bank Publications
ISBN:
Category : Free trade
Languages : en
Pages : 32
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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: Alessandro Nicita
Publisher: World Bank Publications
ISBN:
Category : Free trade
Languages : en
Pages : 32
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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: Alessandro Nicita
Publisher:
ISBN:
Category :
Languages : en
Pages :
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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.
Author: Alessandro Nicita
Publisher: World Bank Publications
ISBN:
Category : Bienestar economico
Languages : en
Pages : 57
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Book Description
Author: Aida Araceli Mellardo Gonzalez
Publisher: Cuvillier Verlag
ISBN: 3736931212
Category : Science
Languages : en
Pages : 274
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Book Description
The analysis of expenditures for different household categories within a CGE framework is a helpful instrument for economists and policy makers. This approach allows researchers to focus on the possible effects that macroeconomic changes and trade reforms might have on household categories, especially in developing countries. This dissertation presents a new household expenditure estimation methodology and an application of it. The estimation is based on a complete household demand system, which is integrated into a household module. The complete demand system regarded in this approach is the one proposed by DEATON and MUELLBAUER (1980) the Almost Ideal Demand System in its linear version (LA/AIDS). The LA/AIDS contains a set of demand functions defining how households in function of prices and household preferences allocate commodities. The household module computes expenditure changes based on changes on prices from the GTAP model and on elasticities coming from the LA/AIDS for Mexican households. The evaluation of household preferences shows that for non-poor households in Mexico, the decisions of purchase between food products and non-food products and services are independently made. Meanwhile, poor households try to first cover their food needs, and as a result of this, are delaying the acquisition of other goods and services. This investigation then evaluates the effects of three different trade reforms on households’ expenditures in Mexico. The results show that Mexico’s efforts to reach a bilateral trade agreement with main trading partners pay off for households as prices of consumed commodities decrease driven by lower values of import commodities. Thus, the first scenario simulating 3 different Free Trade Agreements was identified as the most profitable trade setting for the poorest Mexican households because the price of staple foods decreases considerably. A restricted multilateral agreement considering a partial liberalisation (the second scenario simulating a possible outcome of the Doha Round), was found to be the most prudent and advantageous trade setting for the Mexican households as benefits will be distributed equally across more household categories. The third scenario evaluates a full trade liberalisation, and it was found to improve the performance of export sectors worldwide. The high prices brought about in Mexico might been compensated with gains for farm households, while urban households might lose. However, the inclusion of the income side is required to make conclusive statements on the real effects of a fully liberalised economy in Mexico.
Author: Alessandro Nicita
Publisher:
ISBN:
Category :
Languages : en
Pages : 57
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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: Diana Alarcón González
Publisher: Colegio de La Frontera Norte
ISBN:
Category : Distribution (Economic theory)
Languages : en
Pages : 180
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Book Description
"Study examines trends in income distribution in Mexico during the period of trade and economic liberalization. Makes the obvious but often ignored point that the prediction of orthodox theory can turn out to be false if its assumptions are not fulfilled and if offsetting forces are at work. The study's detailed analysis of the effective protection rates in 1989 shows how inadequate reforms have been as far as the promotion of efficient resource allocation"--Handbook of Latin American Studies, v. 57.
Author: Elena Ianchovichina
Publisher:
ISBN:
Category :
Languages : en
Pages : 49
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Book Description
August 2001Results from a two-step simulation that uses a computable general equilibrium model and detailed consumption and income household data suggest that trade liberalization benefits people in the poorest deciles more than those in the richer ones.Ianchovichina, Nicita, and Soloaga use a two-step, computationally simple procedure to analyze the effects of Mexico's potential unilateral tariff liberalization. First, they use a computable general equilibrium model provided by the Global Trade Analysis Project (GTAP) as the new price generator. Second, they apply the price changes to Mexican household data to assess the effects of the simulated policy on poverty and income distribution.By choosing GTAP as the price generator, the authors are able to model Mexico's differential tariff structure appropriately: almost zero for North American Free Trade Agreement (NAFTA) members and higher tariffs for nonmembers. Even starting with low tariff protection, simulation results show that tariff reform will have a positive effect on welfare for all expenditure deciles. Under an assumption of nonhomothetic individual preferences, trade liberalization benefits people in the poorer deciles more than those in the richer ones.This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to study the effects of trade policy on poverty. The authors may be contacted at
[email protected],
[email protected], or
[email protected].
Author: Thomas W. Hertel
Publisher: World Bank Publications
ISBN: 0821363158
Category : Business & Economics
Languages : en
Pages : 564
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Book Description
Poverty reduction is deemed to be a centerpiece of the Doha Development Agenda currently being negotiated under the auspices of the WTO. Yet there is considerable debate about the poverty impacts of such an agreement. Some are convinced it will increase poverty, while others are equally convinced that it will lead to poverty reduction. This book brings the best scientific methods to bear on this question, taking into account the specific characteristics embodied in the Doha Development Agenda.
Author:
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 526
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Book Description
Author: Jeffrey J. Reimer
Publisher: World Bank Publications
ISBN:
Category : Apertura economica
Languages : en
Pages : 44
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Book Description
