Trade Reforms, Farm Productivity, and Poverty in Bangladesh

This paper analyzes the distributional impacts of trade reforms in rural areas of Bangladesh. The liberalization of trade in irrigation equipment and fertilizer markets during the early 1990s has led to structural changes in the agricultural sector and a significant increase in rice productivity. A...

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Main Authors: Klytchnikova, Irina, Diop, Ndiame
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2006/08/6962161/trade-reforms-farm-productivity-poverty-bangladesh
http://hdl.handle.net/10986/8371
id okr-10986-8371
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGRARIAN ECONOMY
AGRICULTURAL EMPLOYMENT
AGRICULTURAL GROWTH
AGRICULTURAL HOUSEHOLDS
AGRICULTURAL INCOMES
AGRICULTURAL MARKETS
AGRICULTURAL PRICES
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL SECTOR
AGRICULTURAL SECTORS
AGRICULTURAL WAGE
AGRICULTURAL WAGES
AGRICULTURE
AVERAGE YIELDS
CLIMATIC CONDITIONS
COMMODITY
CONSUMER DEMAND
CONSUMER PRICE
CONSUMER PRICES
CONSUMERS
CONSUMPTION EXPENDITURES
CROP INCOME
CROP PRICES
CROP PRODUCTION
CROPS
CULTIVATED LAND
CULTIVATION
DEMAND FOR GOODS
DEREGULATION
DISTRIBUTIONAL EFFECTS
DOMESTIC MARKETS
DROUGHT
ECOLOGICAL ZONES
ECONOMIC GROWTH
ELASTICITY
ELASTICITY OF DEMAND
ELASTICITY OF SUPPLY
EMPLOYMENT OPPORTUNITIES
EXPANSION OF IRRIGATION
EXPENDITURE
FARM
FARM ACTIVITIES
FARM EMPLOYMENT
FARM EMPLOYMENT OPPORTUNITIES
FARM HOUSEHOLDS
FARM INCOME
FARM PRODUCTIVITY
FARMER
FARMING
FERTILIZER
GREEN REVOLUTION
GROWTH RATE
HARVESTS
HOUSEHOLD BUDGET
HOUSEHOLD INCOME
HOUSEHOLD SIZE
HOUSEHOLD SURVEYS
HOUSEHOLD WELFARE
IMPACT ON POVERTY
INCIDENCE OF POVERTY
INCOME
INCOME EFFECTS
INCOME GAINS
INCOME GROWTH
INCOME LEVELS
INCOME SHARES
INEQUALITY
INNOVATION
INTERNATIONAL MARKETS
INTERNATIONAL TRADE
IRRIGATION
LABOR MARKETS
LANDLESS HOUSEHOLDS
MARGINAL REVENUE
MARKET PRICES
MULTIPLIER EFFECT
MULTIPLIER EFFECTS
MULTIPLIERS
PADDY
POOR
POOR FARMERS
POOR HOUSEHOLDS
POOR RURAL HOUSEHOLDS
POOREST HOUSEHOLDS
POVERTY DYNAMICS
POVERTY HEADCOUNT RATES
POVERTY IMPACT
POVERTY INCIDENCE
POVERTY LEVEL
POVERTY LEVELS
POVERTY LINE
POVERTY RATES
POVERTY REDUCTION
POVERTY STATUS
PRICE CHANGE
PRICE CHANGES
PRICE DECLINES
PRICE FLUCTUATIONS
PRICE INCREASE
PRICE INDEXES
PRICE LEVELS
PRODUCER PRICE
PRODUCTION
PRODUCTION INPUTS
PRODUCTION OF RICE
PRODUCTION PROCESS
PRODUCTIVITY IMPROVEMENTS
REAL GDP
REAL INCOME
RICE
RICE CROP
RICE CULTIVATION
RICE PRICE
RICE PRICES
RICE PRODUCTION
RICE VARIETIES
RICE YIELDS
RURAL
RURAL AREAS
RURAL ECONOMY
RURAL GROWTH
RURAL HOUSEHOLDS
RURAL INCOMES
RURAL LABOR
RURAL LABOR MARKET
RURAL MARKETS
RURAL POOR
RURAL POPULATION
RURAL POVERTY
RURAL SECTOR
SALES
SMALL FARMERS
SMALL-SCALE IRRIGATION
SPREAD
SPRING
STATIC ANALYSIS
STRUCTURAL TRANSFORMATION
SUBSISTENCE
SUBSISTENCE AGRICULTURE
SUPPLIERS
TRADE LIBERALIZATION
TRADE REFORMS
WAGE EARNERS
WAGE EMPLOYMENT
WAGE RATES
WELFARE LEVEL
WHOLESALE PRICE
spellingShingle AGRARIAN ECONOMY
AGRICULTURAL EMPLOYMENT
AGRICULTURAL GROWTH
AGRICULTURAL HOUSEHOLDS
AGRICULTURAL INCOMES
AGRICULTURAL MARKETS
AGRICULTURAL PRICES
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL SECTOR
AGRICULTURAL SECTORS
AGRICULTURAL WAGE
AGRICULTURAL WAGES
AGRICULTURE
AVERAGE YIELDS
CLIMATIC CONDITIONS
COMMODITY
CONSUMER DEMAND
CONSUMER PRICE
CONSUMER PRICES
CONSUMERS
CONSUMPTION EXPENDITURES
CROP INCOME
CROP PRICES
CROP PRODUCTION
CROPS
CULTIVATED LAND
CULTIVATION
DEMAND FOR GOODS
DEREGULATION
DISTRIBUTIONAL EFFECTS
DOMESTIC MARKETS
DROUGHT
ECOLOGICAL ZONES
ECONOMIC GROWTH
ELASTICITY
ELASTICITY OF DEMAND
ELASTICITY OF SUPPLY
EMPLOYMENT OPPORTUNITIES
EXPANSION OF IRRIGATION
EXPENDITURE
FARM
FARM ACTIVITIES
FARM EMPLOYMENT
FARM EMPLOYMENT OPPORTUNITIES
FARM HOUSEHOLDS
FARM INCOME
FARM PRODUCTIVITY
FARMER
FARMING
FERTILIZER
GREEN REVOLUTION
GROWTH RATE
HARVESTS
HOUSEHOLD BUDGET
HOUSEHOLD INCOME
HOUSEHOLD SIZE
HOUSEHOLD SURVEYS
HOUSEHOLD WELFARE
IMPACT ON POVERTY
INCIDENCE OF POVERTY
INCOME
INCOME EFFECTS
INCOME GAINS
INCOME GROWTH
INCOME LEVELS
INCOME SHARES
INEQUALITY
INNOVATION
INTERNATIONAL MARKETS
INTERNATIONAL TRADE
IRRIGATION
LABOR MARKETS
LANDLESS HOUSEHOLDS
MARGINAL REVENUE
MARKET PRICES
MULTIPLIER EFFECT
MULTIPLIER EFFECTS
MULTIPLIERS
PADDY
POOR
POOR FARMERS
POOR HOUSEHOLDS
POOR RURAL HOUSEHOLDS
POOREST HOUSEHOLDS
POVERTY DYNAMICS
POVERTY HEADCOUNT RATES
POVERTY IMPACT
POVERTY INCIDENCE
POVERTY LEVEL
POVERTY LEVELS
POVERTY LINE
POVERTY RATES
POVERTY REDUCTION
POVERTY STATUS
PRICE CHANGE
PRICE CHANGES
PRICE DECLINES
PRICE FLUCTUATIONS
PRICE INCREASE
PRICE INDEXES
PRICE LEVELS
PRODUCER PRICE
PRODUCTION
PRODUCTION INPUTS
PRODUCTION OF RICE
PRODUCTION PROCESS
PRODUCTIVITY IMPROVEMENTS
REAL GDP
REAL INCOME
RICE
RICE CROP
RICE CULTIVATION
RICE PRICE
RICE PRICES
RICE PRODUCTION
RICE VARIETIES
RICE YIELDS
RURAL
RURAL AREAS
RURAL ECONOMY
RURAL GROWTH
RURAL HOUSEHOLDS
RURAL INCOMES
RURAL LABOR
RURAL LABOR MARKET
RURAL MARKETS
RURAL POOR
RURAL POPULATION
RURAL POVERTY
RURAL SECTOR
SALES
SMALL FARMERS
SMALL-SCALE IRRIGATION
SPREAD
SPRING
STATIC ANALYSIS
STRUCTURAL TRANSFORMATION
SUBSISTENCE
SUBSISTENCE AGRICULTURE
SUPPLIERS
TRADE LIBERALIZATION
TRADE REFORMS
WAGE EARNERS
WAGE EMPLOYMENT
WAGE RATES
WELFARE LEVEL
WHOLESALE PRICE
Klytchnikova, Irina
Diop, Ndiame
Trade Reforms, Farm Productivity, and Poverty in Bangladesh
geographic_facet South Asia
Bangladesh
relation Policy Research Working Paper; No. 3980
description This paper analyzes the distributional impacts of trade reforms in rural areas of Bangladesh. The liberalization of trade in irrigation equipment and fertilizer markets during the early 1990s has led to structural changes in the agricultural sector and a significant increase in rice productivity. A resulting increase in output has been associated with a decline in producer and consumer rice prices of approximately 25 percent. Using a combination of ex-post and ex-ante approaches, the authors investigate the implications of the changes in rice productivity and prices for the welfare of households. They find that the net effects of increased rice productivity and lower rice prices have benefited the poor. Regardless of the particular category analyzed, the poorest households emerged as being particularly positively affected by reforms in the 1990s. This mainly reflects the fact that they are predominantly net rice buyers in both urban and rural markets. In contrast, large net sellers of rice, among the better-off households in the rural areas, were the main losers. Since net buyers in rural areas tend to be poorer than net sellers, trade liberalization has benefited the poor. Although the authors are not able to test empirically what has happened to the welfare level of agricultural wage earners, secondary evidence suggests that they have gained from trade liberalization.
format Publications & Research :: Policy Research Working Paper
author Klytchnikova, Irina
Diop, Ndiame
author_facet Klytchnikova, Irina
Diop, Ndiame
author_sort Klytchnikova, Irina
title Trade Reforms, Farm Productivity, and Poverty in Bangladesh
title_short Trade Reforms, Farm Productivity, and Poverty in Bangladesh
title_full Trade Reforms, Farm Productivity, and Poverty in Bangladesh
title_fullStr Trade Reforms, Farm Productivity, and Poverty in Bangladesh
title_full_unstemmed Trade Reforms, Farm Productivity, and Poverty in Bangladesh
title_sort trade reforms, farm productivity, and poverty in bangladesh
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2006/08/6962161/trade-reforms-farm-productivity-poverty-bangladesh
http://hdl.handle.net/10986/8371
_version_ 1764406340099244032
spelling okr-10986-83712021-04-23T14:02:41Z Trade Reforms, Farm Productivity, and Poverty in Bangladesh Klytchnikova, Irina Diop, Ndiame AGRARIAN ECONOMY AGRICULTURAL EMPLOYMENT AGRICULTURAL GROWTH AGRICULTURAL HOUSEHOLDS AGRICULTURAL INCOMES AGRICULTURAL MARKETS AGRICULTURAL PRICES AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTOR AGRICULTURAL SECTORS AGRICULTURAL WAGE AGRICULTURAL WAGES AGRICULTURE AVERAGE YIELDS CLIMATIC CONDITIONS COMMODITY CONSUMER DEMAND CONSUMER PRICE CONSUMER PRICES CONSUMERS CONSUMPTION EXPENDITURES CROP INCOME CROP PRICES CROP PRODUCTION CROPS CULTIVATED LAND CULTIVATION DEMAND FOR GOODS DEREGULATION DISTRIBUTIONAL EFFECTS DOMESTIC MARKETS DROUGHT ECOLOGICAL ZONES ECONOMIC GROWTH ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF SUPPLY EMPLOYMENT OPPORTUNITIES EXPANSION OF IRRIGATION EXPENDITURE FARM FARM ACTIVITIES FARM EMPLOYMENT FARM EMPLOYMENT OPPORTUNITIES FARM HOUSEHOLDS FARM INCOME FARM PRODUCTIVITY FARMER FARMING FERTILIZER GREEN REVOLUTION GROWTH RATE HARVESTS HOUSEHOLD BUDGET HOUSEHOLD INCOME HOUSEHOLD SIZE HOUSEHOLD SURVEYS HOUSEHOLD WELFARE IMPACT ON POVERTY INCIDENCE OF POVERTY INCOME INCOME EFFECTS INCOME GAINS INCOME GROWTH INCOME LEVELS INCOME SHARES INEQUALITY INNOVATION INTERNATIONAL MARKETS INTERNATIONAL TRADE IRRIGATION LABOR MARKETS LANDLESS HOUSEHOLDS MARGINAL REVENUE MARKET PRICES MULTIPLIER EFFECT MULTIPLIER EFFECTS MULTIPLIERS PADDY POOR POOR FARMERS POOR HOUSEHOLDS POOR RURAL HOUSEHOLDS POOREST HOUSEHOLDS POVERTY DYNAMICS POVERTY HEADCOUNT RATES POVERTY IMPACT POVERTY INCIDENCE POVERTY LEVEL POVERTY LEVELS POVERTY LINE POVERTY RATES POVERTY REDUCTION POVERTY STATUS PRICE CHANGE PRICE CHANGES PRICE DECLINES PRICE FLUCTUATIONS PRICE INCREASE PRICE INDEXES PRICE LEVELS PRODUCER PRICE PRODUCTION PRODUCTION INPUTS PRODUCTION OF RICE PRODUCTION PROCESS PRODUCTIVITY IMPROVEMENTS REAL GDP REAL INCOME RICE RICE CROP RICE CULTIVATION RICE PRICE RICE PRICES RICE PRODUCTION RICE VARIETIES RICE YIELDS RURAL RURAL AREAS RURAL ECONOMY RURAL GROWTH RURAL HOUSEHOLDS RURAL INCOMES RURAL LABOR RURAL LABOR MARKET RURAL MARKETS RURAL POOR RURAL POPULATION RURAL POVERTY RURAL SECTOR SALES SMALL FARMERS SMALL-SCALE IRRIGATION SPREAD SPRING STATIC ANALYSIS STRUCTURAL TRANSFORMATION SUBSISTENCE SUBSISTENCE AGRICULTURE SUPPLIERS TRADE LIBERALIZATION TRADE REFORMS WAGE EARNERS WAGE EMPLOYMENT WAGE RATES WELFARE LEVEL WHOLESALE PRICE This paper analyzes the distributional impacts of trade reforms in rural areas of Bangladesh. The liberalization of trade in irrigation equipment and fertilizer markets during the early 1990s has led to structural changes in the agricultural sector and a significant increase in rice productivity. A resulting increase in output has been associated with a decline in producer and consumer rice prices of approximately 25 percent. Using a combination of ex-post and ex-ante approaches, the authors investigate the implications of the changes in rice productivity and prices for the welfare of households. They find that the net effects of increased rice productivity and lower rice prices have benefited the poor. Regardless of the particular category analyzed, the poorest households emerged as being particularly positively affected by reforms in the 1990s. This mainly reflects the fact that they are predominantly net rice buyers in both urban and rural markets. In contrast, large net sellers of rice, among the better-off households in the rural areas, were the main losers. Since net buyers in rural areas tend to be poorer than net sellers, trade liberalization has benefited the poor. Although the authors are not able to test empirically what has happened to the welfare level of agricultural wage earners, secondary evidence suggests that they have gained from trade liberalization. 2012-06-18T21:36:59Z 2012-06-18T21:36:59Z 2006-08 http://documents.worldbank.org/curated/en/2006/08/6962161/trade-reforms-farm-productivity-poverty-bangladesh http://hdl.handle.net/10986/8371 English Policy Research Working Paper; No. 3980 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia Bangladesh