Analysing Macro-Poverty Linkages of External Liberalisation: Gaps, Achievements and Alternatives

14 Pages Posted: 23 Apr 2005

See all articles by Bernhard G. Gunter

Bernhard G. Gunter

Bangladesh Development Research Center (BDRC); American University - Department of Economics

Lance Taylor

The New School - Bernard Schwartz Center for Economic Policy Analysis (CEPA)

A. Erinc Yeldan

Bilkent University

Abstract

CGE modelling has dominated analysis of the impact of external liberalisation on poverty. This article provides a structuralist critique of standard neo-classical CGE models. It highlights five sets of gaps and partial achievements in the modelling of issues affecting the poverty impact of macroeconomic policies: duality and structural rigidities; efficiency gains and quota rents; the investment and savings specification; the nature of public expenditures; and the modelling of financial fragility, risk premia and issues of credibility. It outlines a model that makes it possible to analyse more plausible stories about the impact of both current and capital account liberalisation and questions the realism of existing approaches to ex-ante poverty impact assessment.

Suggested Citation

Gunter, Bernhard G. and Taylor, Lance and Yeldan, A. Erinc, Analysing Macro-Poverty Linkages of External Liberalisation: Gaps, Achievements and Alternatives. Development Policy Review, Vol. 23, No. 3, pp. 285-298, May 2005. Available at SSRN: https://ssrn.com/abstract=707223

Bernhard G. Gunter

Bangladesh Development Research Center (BDRC) ( email )

2508 Fowler Street
Falls Church, VA 22046-2012
United States

American University - Department of Economics ( email )

4400 Massachusetts Avenue, N.W.
Washington, DC 20016-8029
United States

HOME PAGE: http://www.american.edu/cas/faculty/gunter.cfm

Lance Taylor

The New School - Bernard Schwartz Center for Economic Policy Analysis (CEPA) ( email )

80 Fifth Ave.
5th Floor
New York, NY 10027
United States

A. Erinc Yeldan (Contact Author)

Bilkent University ( email )

06533 Ankara
Turkey
+90.312.2664000/1659 (Phone)
+90.312.2665140 (Fax)

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