Impacts of Trade Liberalization on Poverty and Inequality in Argentina
Using the most recent estimates of agricultural price distortions, this chapter studies the economic, poverty, and income inequality impacts of both global and domestic trade reform in Argentina, with a special focus on export taxes. Argentina offe...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/504531468004766639/Impacts-of-trade-liberalization-on-poverty-and-inequality-in-Argentina http://hdl.handle.net/10986/28170 |
| Summary: | Using the most recent estimates of
agricultural price distortions, this chapter studies the
economic, poverty, and income inequality impacts of both
global and domestic trade reform in Argentina, with a
special focus on export taxes. Argentina offers an
interesting case study as the only large agricultural
exporter that has, at many points in its history, applied
export taxes to several of its agricultural products. The
chapter combines results from a global economy-wide model
(World Bank's linkage model), a national computable
general equilibrium (CGE) model, and micro-simulations. The
results suggest that liberalization of world trade
(including subsidies and import taxes, but not export
taxes), both for agricultural and non-agricultural goods,
reduces poverty and inequality in Argentina. However, if
only agricultural goods are included, indicators for poverty
and inequality do not improve and even deteriorate somewhat.
This is particularly the case if export taxes are
eliminated. The chapter discusses the possible reasons for
those results, offers some caveats, and suggests some lines
for further research. |
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