Assessing the Impacts of Trade on Poverty and Inequality

Posted: 16 Nov 2003

See all articles by Jorge Arbache

Jorge Arbache

University of Brasilia - Department of Economics

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 liberalization, CGE, counterfactual microsimulations

JEL Classification: F16, C68

Suggested Citation

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

Jorge Arbache (Contact Author)

University of Brasilia - Department of Economics ( email )

Campus Universitário Darcy Ribeiro
Asa Norte
Brasília, Distrito Federal 70910-900
+ 55 61 8194 4529 (Phone)

Francisco Galrao Carneiro

The World Bank ( email )

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

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