Assessing the Impacts of Trade on Poverty and Inequality

11 Pages Posted: 1 Oct 2003

See all articles by Jorge Arbache

Jorge Arbache

Development Bank of Latin America - CAF

Francisco Carneiro

The World Bank

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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 Classification: F16, C68

Suggested Citation

Arbache, Jorge and Carneiro, Francisco Galrao, Assessing the Impacts of Trade on Poverty and Inequality. Available at SSRN: or

Jorge Arbache (Contact Author)

Development Bank of Latin America - CAF ( email )

Av Canaval Moreyra 380
Lima, Lima
+ 55 61 98194 4529 (Phone)

Francisco Galrao Carneiro

The World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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