Using Survey Data to Assess the Distributional Effects of Trade Policy

The author develops and applies a methodology to empirically explore the effects of trade policies on the distribution of income and poverty in developing countries. He uses a methodology based on two links-one connecting trade policies to prices,...

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Main Author:	Porto, Guido G.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	BENCHMARK COCOA PRICES COMPENSATING VARIATION COMPETITIVE MARKETS CONSTANT RETURNS TO SCALE CONSUMER PRICES CONSUMERS DEMAND ANALYSIS DEREGULATION DOMESTIC MARKETS ELASTICITIES ELASTICITY ENDOGENOUS VARIABLES ENGEL CURVE ENGEL CURVES EQUILIBRIUM EQUILIBRIUM PRICES EXCHANGE RATES EXOGENOUS VARIABLES FACTOR DEMAND FACTOR PRICES FINANCIAL CRISIS FUNCTIONAL FORMS GDP GINI COEFFICIENT IMPORTS INCOME INCOME DISTRIBUTION INCOME EFFECTS INCOME INEQUALITY INCOME LEVELS INFLATION LABOR MARKET LEGISLATION LEISURE MARKET ANALYSIS OPEN ECONOMIES PER CAPITA INCOME PRICE ADJUSTMENT PRICE CHANGES PRICE ELASTICITIES PRICE INDEX PRICE INDICES SAVINGS SOCIAL WELFARE SUBSTITUTION TARIFF BARRIERS TIME SERIES TRADE LIBERALIZATION TRADE POLICIES TRADE REFORMS UNEMPLOYMENT WAGES WELFARE EFFECTS WELFARE FUNCTION WORLD MARKETS SURVEY DATA TRADE POLICY DISTRIBUTION (ECONOMIC THEORY) INCOME DISTRIBUTION RESEARCH PRICE POLICY HOUSEHOLD WELFARE INDICATORS REGIONAL TRADE AGREEMENTS TARIFF POLICY TRADE REGIME MERCOSUR HOUSEHOLD EXPENDITURE SURVEYS NONPARAMETRIC STATISTICS WORLD MARKETS SURVEY DATA
Online Access:	http://documents.worldbank.org/curated/en/2003/09/2534253/using-survey-data-assess-distributional-effects-trade-policy http://hdl.handle.net/10986/18056

id	okr-10986-18056
recordtype	oai_dc
spelling	okr-10986-180562021-04-23T14:03:41Z Using Survey Data to Assess the Distributional Effects of Trade Policy Porto, Guido G. BENCHMARK COCOA PRICES COMPENSATING VARIATION COMPETITIVE MARKETS CONSTANT RETURNS TO SCALE CONSUMER PRICES CONSUMERS DEMAND ANALYSIS DEREGULATION DOMESTIC MARKETS ELASTICITIES ELASTICITY ENDOGENOUS VARIABLES ENGEL CURVE ENGEL CURVES EQUILIBRIUM EQUILIBRIUM PRICES EXCHANGE RATES EXOGENOUS VARIABLES FACTOR DEMAND FACTOR PRICES FINANCIAL CRISIS FUNCTIONAL FORMS GDP GINI COEFFICIENT IMPORTS INCOME INCOME DISTRIBUTION INCOME EFFECTS INCOME INEQUALITY INCOME LEVELS INFLATION LABOR MARKET LEGISLATION LEISURE MARKET ANALYSIS OPEN ECONOMIES PER CAPITA INCOME PRICE ADJUSTMENT PRICE CHANGES PRICE ELASTICITIES PRICE INDEX PRICE INDICES SAVINGS SOCIAL WELFARE SUBSTITUTION TARIFF BARRIERS TIME SERIES TRADE LIBERALIZATION TRADE POLICIES TRADE REFORMS UNEMPLOYMENT WAGES WELFARE EFFECTS WELFARE FUNCTION WORLD MARKETS SURVEY DATA TRADE POLICY DISTRIBUTION (ECONOMIC THEORY) INCOME DISTRIBUTION RESEARCH PRICE POLICY HOUSEHOLD WELFARE INDICATORS REGIONAL TRADE AGREEMENTS TARIFF POLICY TRADE REGIME MERCOSUR HOUSEHOLD EXPENDITURE SURVEYS NONPARAMETRIC STATISTICS WORLD MARKETS SURVEY DATA The author develops and applies a methodology to empirically explore the effects of trade policies on the distribution of income and poverty in developing countries. He uses a methodology based on two links-one connecting trade policies to prices, and another connecting prices to household welfare. The author applies the methodology to the study of the distributional effects of Mercosur on Argentine families. The main finding is that Mercosur benefits the average Argentine household across the entire income distribution. There is evidence of a pro-poor bias of the regional trade agreement: on average, poor households gain more from the reform than middle-income households, whereas the effects on rich families are positive but not statistically significant. Prior to the reform, Argentine trade policy protected the rich over the poor, and after the reform, granted some protection to the poor. As relative pre-Mercosur tariffs are higher on relatively skill-intensive goods, the tariff removals tend to benefit the poor over the rich. These findings indicate that trade reforms may actually help improve the distribution of income and reduce poverty in the country. 2014-04-25T16:53:30Z 2014-04-25T16:53:30Z 2003-09 http://documents.worldbank.org/curated/en/2003/09/2534253/using-survey-data-assess-distributional-effects-trade-policy http://hdl.handle.net/10986/18056 English en_US Policy Research Working Paper;No. 3137 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean ARGENTINA
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	BENCHMARK COCOA PRICES COMPENSATING VARIATION COMPETITIVE MARKETS CONSTANT RETURNS TO SCALE CONSUMER PRICES CONSUMERS DEMAND ANALYSIS DEREGULATION DOMESTIC MARKETS ELASTICITIES ELASTICITY ENDOGENOUS VARIABLES ENGEL CURVE ENGEL CURVES EQUILIBRIUM EQUILIBRIUM PRICES EXCHANGE RATES EXOGENOUS VARIABLES FACTOR DEMAND FACTOR PRICES FINANCIAL CRISIS FUNCTIONAL FORMS GDP GINI COEFFICIENT IMPORTS INCOME INCOME DISTRIBUTION INCOME EFFECTS INCOME INEQUALITY INCOME LEVELS INFLATION LABOR MARKET LEGISLATION LEISURE MARKET ANALYSIS OPEN ECONOMIES PER CAPITA INCOME PRICE ADJUSTMENT PRICE CHANGES PRICE ELASTICITIES PRICE INDEX PRICE INDICES SAVINGS SOCIAL WELFARE SUBSTITUTION TARIFF BARRIERS TIME SERIES TRADE LIBERALIZATION TRADE POLICIES TRADE REFORMS UNEMPLOYMENT WAGES WELFARE EFFECTS WELFARE FUNCTION WORLD MARKETS SURVEY DATA TRADE POLICY DISTRIBUTION (ECONOMIC THEORY) INCOME DISTRIBUTION RESEARCH PRICE POLICY HOUSEHOLD WELFARE INDICATORS REGIONAL TRADE AGREEMENTS TARIFF POLICY TRADE REGIME MERCOSUR HOUSEHOLD EXPENDITURE SURVEYS NONPARAMETRIC STATISTICS WORLD MARKETS SURVEY DATA
spellingShingle	BENCHMARK COCOA PRICES COMPENSATING VARIATION COMPETITIVE MARKETS CONSTANT RETURNS TO SCALE CONSUMER PRICES CONSUMERS DEMAND ANALYSIS DEREGULATION DOMESTIC MARKETS ELASTICITIES ELASTICITY ENDOGENOUS VARIABLES ENGEL CURVE ENGEL CURVES EQUILIBRIUM EQUILIBRIUM PRICES EXCHANGE RATES EXOGENOUS VARIABLES FACTOR DEMAND FACTOR PRICES FINANCIAL CRISIS FUNCTIONAL FORMS GDP GINI COEFFICIENT IMPORTS INCOME INCOME DISTRIBUTION INCOME EFFECTS INCOME INEQUALITY INCOME LEVELS INFLATION LABOR MARKET LEGISLATION LEISURE MARKET ANALYSIS OPEN ECONOMIES PER CAPITA INCOME PRICE ADJUSTMENT PRICE CHANGES PRICE ELASTICITIES PRICE INDEX PRICE INDICES SAVINGS SOCIAL WELFARE SUBSTITUTION TARIFF BARRIERS TIME SERIES TRADE LIBERALIZATION TRADE POLICIES TRADE REFORMS UNEMPLOYMENT WAGES WELFARE EFFECTS WELFARE FUNCTION WORLD MARKETS SURVEY DATA TRADE POLICY DISTRIBUTION (ECONOMIC THEORY) INCOME DISTRIBUTION RESEARCH PRICE POLICY HOUSEHOLD WELFARE INDICATORS REGIONAL TRADE AGREEMENTS TARIFF POLICY TRADE REGIME MERCOSUR HOUSEHOLD EXPENDITURE SURVEYS NONPARAMETRIC STATISTICS WORLD MARKETS SURVEY DATA Porto, Guido G. Using Survey Data to Assess the Distributional Effects of Trade Policy
geographic_facet	Latin America & Caribbean ARGENTINA
relation	Policy Research Working Paper;No. 3137
description	The author develops and applies a methodology to empirically explore the effects of trade policies on the distribution of income and poverty in developing countries. He uses a methodology based on two links-one connecting trade policies to prices, and another connecting prices to household welfare. The author applies the methodology to the study of the distributional effects of Mercosur on Argentine families. The main finding is that Mercosur benefits the average Argentine household across the entire income distribution. There is evidence of a pro-poor bias of the regional trade agreement: on average, poor households gain more from the reform than middle-income households, whereas the effects on rich families are positive but not statistically significant. Prior to the reform, Argentine trade policy protected the rich over the poor, and after the reform, granted some protection to the poor. As relative pre-Mercosur tariffs are higher on relatively skill-intensive goods, the tariff removals tend to benefit the poor over the rich. These findings indicate that trade reforms may actually help improve the distribution of income and reduce poverty in the country.
format	Publications & Research :: Policy Research Working Paper
author	Porto, Guido G.
author_facet	Porto, Guido G.
author_sort	Porto, Guido G.
title	Using Survey Data to Assess the Distributional Effects of Trade Policy
title_short	Using Survey Data to Assess the Distributional Effects of Trade Policy
title_full	Using Survey Data to Assess the Distributional Effects of Trade Policy
title_fullStr	Using Survey Data to Assess the Distributional Effects of Trade Policy
title_full_unstemmed	Using Survey Data to Assess the Distributional Effects of Trade Policy
title_sort	using survey data to assess the distributional effects of trade policy
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2003/09/2534253/using-survey-data-assess-distributional-effects-trade-policy http://hdl.handle.net/10986/18056
_version_	1764438816714653696

Using Survey Data to Assess the Distributional Effects of Trade Policy

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