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Assessing the Impacts of Trade on Poverty and Inequality

Jorge Saba Arbache
World Bank

Francisco Galrao Carneiro
The World Bank; Catholic University of Brazil (UCB) - Department of Economics

Abstract:
This paper uses a computable general equilibrium model to simulate different trade liberalization policy scenarios and counterfactual microsimulations to assess the impacts of greater trade openness on household income distribution and poverty ratios. Our conclusion is that trade liberalization alone may not be sufficient to significantly reduce poverty and inequality.

Keywords: poverty, employment, income inequality, trade iberalization, CGE, counterfactual microsimulations

JEL Classifications: F16, C68

Working Paper Series

Date posted: October 01, 2003 ; Last revised: November 17, 2003

Suggested Citation

Arbache, Jorge Saba and Carneiro, Francisco Galrao, Assessing the Impacts of Trade on Poverty and Inequality. Available at SSRN: http://ssrn.com/abstract=447165 or doi:10.2139/ssrn.447165

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Jorge Saba Arbache (Contact Author) World Bank ( email ) 1818 H Street MSN J5-500 Washington, DC 20433 United States
Francisco G. Carneiro The World Bank ( email ) 1818 H Street, N.W. Washington, DC 20433 United States
Catholic University of Brazil (UCB) - Department of Economics ( email ) Graduate Programme in Economics SGAN 916, Modulo B, Asa Norte 70790-160 Brasilia-DF Brazil +55 61 340-5550 (Phone) +55 61 347-4797 (Fax) HOME PAGE: www.galraocarneiro.com

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