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Are Export Promotion and Trade Liberalisation Good for Latin America's Poor?

Author

Listed:
  • Enrique Ganuza
  • Samuel Morley
  • Valeria Piñeiro
  • Sherman Robinson
  • Rob Vos

Abstract

This article reports on a project for 16 Latin American countries, primarily carried out by in-country teams, that used country-specific but relatively standard CGE models linked to household microsimulation models to assess the impact of trade liberalisation, exchange-rate manipulation, capital inflows, and terms-of-trade changes on output, employment and poverty. The results indicate that, almost everywhere, liberalization increased output, reduced poverty, and had positive effects on employment or wages. Rising skilled-unskilled wage gaps in some countries led to increased income inequality. In most countries, alternative liberalization scenarios had similar positive effects. Skill differentials, however, rise in some countries and fall in others, depending on the export structure. Finally, capital inflows were expansionary and reduced poverty. Copyright Overseas Development Institute, 2005.

Suggested Citation

  • Enrique Ganuza & Samuel Morley & Valeria Piñeiro & Sherman Robinson & Rob Vos, 2005. "Are Export Promotion and Trade Liberalisation Good for Latin America's Poor?," Development Policy Review, Overseas Development Institute, vol. 23(3), pages 385-403, May.
    • Handle: RePEc:bla:devpol:v:23:y:2005:i:3:p:385-403
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    Cited by:

    1. Gutiérrez, Gabriel, 2005. "Ex-post evaluation of the employment effects of a preferential trade agreement: methodological issues, illustrated with a reference to Chile," Comercio Internacional 4399, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Bergh, Andreas & Nilsson, Therese, 2011. "Globalization and Absolute Poverty – A Panel Data Study," Working Paper Series 862, Research Institute of Industrial Economics.
    3. Cristián Mardones P., 2014. "Complementarity between flat tax and conditional cash transfers to improve the income distribution in Chile," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 17(3), pages 04-27, December.
    4. Sámano, Claudia & Szekely, Miguel, 2012. "Did Trade Openness Affect Income Distribution in Latin America? Evidence for the Years 1980-2010," WIDER Working Paper Series 003, World Institute for Development Economic Research (UNU-WIDER).
    5. Sryneath Chhuor, 2017. "Potential roles of export orientation of Cambodia’s agriculture and agro-industry: an application of CGE analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-33, December.
    6. Aragie, E. & Balié, J. & Morales, C. & Pauw, K., 2023. "Synergies and trade-offs between agricultural export promotion and food security: Evidence from African economies," World Development, Elsevier, vol. 172(C).

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