Are the 'Poor' Getting Globalized?

One reason that poor people may not capture the full benefit from participation in international markets is that the goods they produce tend to be subject to relatively high trade barriers. This paper analyzes market access barriers faced by househ...

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Main Authors: Mendoza, Adelina, Nayyar, Gaurav, Piermartini, Roberta
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
Online Access:http://documents.worldbank.org/curated/en/979411539182283136/Are-the-Poor-Getting-Globalized
http://hdl.handle.net/10986/30576
id okr-10986-30576
recordtype oai_dc
spelling okr-10986-305762021-06-08T14:42:48Z Are the 'Poor' Getting Globalized? Mendoza, Adelina Nayyar, Gaurav Piermartini, Roberta TRADE LIBERALIZATION GLOBALIZATION MARKET ACCESS INCOME DISTRIBUTION One reason that poor people may not capture the full benefit from participation in international markets is that the goods they produce tend to be subject to relatively high trade barriers. This paper analyzes market access barriers faced by households in different income deciles by matching household survey data from India based on the industrial classification of their economic activity. Tariffs in international markets are higher, and nontariff measures more numerous, on goods produced by poor workers than on goods produced by rich workers. Tariffs faced by exporters are higher on goods produced in rural and more remote areas than on those in urban centers, on goods produced by informal enterprises than by formal ones, and on goods produced by women than by men. Furthermore, the global reduction in tariffs from 1996 to 2012 failed to ameliorate these differences. How did we get there? Efforts to protect poor workers across countries resulted in a coordination problem. Indeed, tariff protection in China and the United States is higher on goods produced by poor workers than on goods produced by rich workers. Therefore, if poor workers are employed in similar sectors, then each country's attempts to protect its poor workers by imposing higher tariffs and more nontariff measures on such goods will reduce the access of all poor workers to international markets, and thus limit the gains from trade. 2018-10-16T19:16:53Z 2018-10-16T19:16:53Z 2018-10 Working Paper http://documents.worldbank.org/curated/en/979411539182283136/Are-the-Poor-Getting-Globalized http://hdl.handle.net/10986/30576 English Policy Research Working Paper;No. 8609 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic TRADE LIBERALIZATION
GLOBALIZATION
MARKET ACCESS
INCOME DISTRIBUTION
spellingShingle TRADE LIBERALIZATION
GLOBALIZATION
MARKET ACCESS
INCOME DISTRIBUTION
Mendoza, Adelina
Nayyar, Gaurav
Piermartini, Roberta
Are the 'Poor' Getting Globalized?
geographic_facet South Asia
India
relation Policy Research Working Paper;No. 8609
description One reason that poor people may not capture the full benefit from participation in international markets is that the goods they produce tend to be subject to relatively high trade barriers. This paper analyzes market access barriers faced by households in different income deciles by matching household survey data from India based on the industrial classification of their economic activity. Tariffs in international markets are higher, and nontariff measures more numerous, on goods produced by poor workers than on goods produced by rich workers. Tariffs faced by exporters are higher on goods produced in rural and more remote areas than on those in urban centers, on goods produced by informal enterprises than by formal ones, and on goods produced by women than by men. Furthermore, the global reduction in tariffs from 1996 to 2012 failed to ameliorate these differences. How did we get there? Efforts to protect poor workers across countries resulted in a coordination problem. Indeed, tariff protection in China and the United States is higher on goods produced by poor workers than on goods produced by rich workers. Therefore, if poor workers are employed in similar sectors, then each country's attempts to protect its poor workers by imposing higher tariffs and more nontariff measures on such goods will reduce the access of all poor workers to international markets, and thus limit the gains from trade.
format Working Paper
author Mendoza, Adelina
Nayyar, Gaurav
Piermartini, Roberta
author_facet Mendoza, Adelina
Nayyar, Gaurav
Piermartini, Roberta
author_sort Mendoza, Adelina
title Are the 'Poor' Getting Globalized?
title_short Are the 'Poor' Getting Globalized?
title_full Are the 'Poor' Getting Globalized?
title_fullStr Are the 'Poor' Getting Globalized?
title_full_unstemmed Are the 'Poor' Getting Globalized?
title_sort are the 'poor' getting globalized?
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/979411539182283136/Are-the-Poor-Getting-Globalized
http://hdl.handle.net/10986/30576
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