IDEAS home Printed from https://ideas.repec.org/p/fpr/tmddps/38.html
   My bibliography  Save this paper

Trade reform and the poor in Morocco: a rural-urban general equilibrium analysis of reduced protection

Author

Listed:
  • Lofgren, Hans

Abstract

Morocco is currently about to start reducing industrial protection in the context of its association agreement with the European Union. However, agriculture, which represents the major income source for the disfavored rural population, is the sector that is most strongly protected. In this study, a general equilibrium model of Morocco is used as a laboratory for analyzing the short-run equilibrium effects of alternative scenarios for reduced protection for agriculture and industry. The model, which is calibrated to a Social Accounting Matrix for 1994, is distinguished by an explicit separation of activities, factors, and households into rural and urban. It has a detailed treatment of agricultural and other rural production, the labor market, and households (disaggregated into four types: rural poor, rural non-poor, urban poor, urban non-poor). The simulation results indicate that reduced agricultural protection would generate significant aggregate welfare gains at the same time a significant part of the disadvantaged rural population would lose strongly. The impact of industrial tariff cuts is small. The outcome is less unfavorable for rural households over a slightly longer time frame where labor migration between agriculture, the rest of the rural economy and urban areas is feasible. The results for simulations that introduce compensatory measures targeting the rural population suggest that the dilemma presented by the tradeoff between aggregate and rural welfare can be overcome: in simulations introducing trade liberalization together with government transfers to owners of rainfed agricultural resources, or moderate improvements in rural skill levels or productivity in rural non-agriculture, the gains from trade liberalization are shared relatively evenly among all household groups.

Suggested Citation

  • Lofgren, Hans, 1999. "Trade reform and the poor in Morocco: a rural-urban general equilibrium analysis of reduced protection," TMD discussion papers 38, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:tmddps:38
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/tmdp38.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. International Monetary Fund, 1997. "Morocco: Selected Issues," IMF Staff Country Reports 1997/006, International Monetary Fund.
    2. Rutherford, Thomas F. & Rutstrom, E.E. & Tarr, David, 1993. "Morocco's free trade agreement with the European community : a quantitative assessment," Policy Research Working Paper Series 1173, The World Bank.
    3. Maurizio Bussolo & David Roland-Holst, 1993. "A Detailed Input-Output Table for Morocco, 1990," OECD Development Centre Working Papers 90, OECD Publishing.
    4. Ms. Susan Fennell & Ms. Patricia Alonso-Gamo & Mr. Khaled Sakr, 1997. "Adjusting to New Realities: MENA, The Uruguay Round, and the EU-Mediterranean Initiative," IMF Working Papers 1997/005, International Monetary Fund.
    5. World Bank, 2010. "World Development Report 2010," World Bank Publications - Books, The World Bank Group, number 4387.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dawood Mamoon & Syed Mansoob Murshed, 2013. "Education bias of trade liberalization and wage inequality in developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(4), pages 572-604, June.
    2. Mouna Cherkaoui & Ayache Khellaf & Abdelaziz Nihou, 2011. "The Price Effect of Tariff Liberalization in Morocco: Measuring the Impact on Household Welfare," Working Papers 637, Economic Research Forum, revised 10 Jan 2011.
    3. Mamoon, Dawood & Murshed, S. Mansoob, 2011. "Labour Markets, Education and Duality of Returns," MPRA Paper 29529, University Library of Munich, Germany.
    4. Agenor, Pierre-Richard & Aynaoui, Karim El, 2003. "Labor market policies and unemployment in Morocco : a quantitative analysis," Policy Research Working Paper Series 3091, The World Bank.
    5. Nicolas Hérault, 2004. "Un modèle d'équilibre général calculable (MEGC) pour évaluer les effets de l'ouverture au commerce international : le cas de l'Afrique du Sud," Documents de travail 102, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    6. Alemayehu Geda, 2006. "Openness, Inequality and Poverty in Africa," Working Papers 25, United Nations, Department of Economics and Social Affairs.
    7. Mamoon, Dawood, 2001. "What May Constitute an Equal Society? Addressing Externalities of Globalization:," MPRA Paper 77335, University Library of Munich, Germany.
    8. Dawood MAMOON, 2018. "Skilled-unskilled wage asymmetries as an outcome of skewed international trade patterns in the South," Turkish Economic Review, KSP Journals, vol. 5(1), pages 65-82, March.
    9. Nadia Belhaj Hassine & Veronique Robichaud & Bernard Decaluwé, 2010. "Agricultural Trade Liberalization, Productivity Gain and Poverty Alleviation: A General Equilibrium Analysis," Working Papers 519, Economic Research Forum, revised 05 Jan 2010.
    10. Dawood MAMOON, 2018. "Globalization, political orientation and wage inequality: From Donald Trump’s election to Angela Merkal’s re-election," Turkish Economic Review, KSP Journals, vol. 5(1), pages 12-21, March.
    11. Pierre-Richard Agénor & Karim El Aynaoui, 2005. "Politiques du marché du travail et chômage au Maroc : une analyse quantitative," Revue d’économie du développement, De Boeck Université, vol. 13(1), pages 5-51.
    12. Dawood Mamoon, 2015. "How May International Trade affect Poverty in a Developing Country Setup? The Inequality Channel," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(5), pages 230-244, May.
    13. Dawood Mamoon, 2006. "Which Institutions Are More Relevant Than Others in Inequality Mitigation?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 893-912.
    14. Mamoon, Dawood, 2017. "Governance over Economics: Making Globalisation Good for the Poor," MPRA Paper 82910, University Library of Munich, Germany.
    15. Mamoon, Dawood, 2007. "Skill Premiums of Trading in International Markets and Equity: Some Lessons for Pro Poor Education Policies in Developing Countries," MPRA Paper 4319, University Library of Munich, Germany.
    16. Bittencourt, Maurício Vaz Lobo & Kraybill, David S. & Larson, Donald W., 2006. "Consequences Of Trade Liberalization On Poverty And Income Distribution In Brazil," 2006 Annual meeting, July 23-26, Long Beach, CA 21128, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lofgren, Hans & El-Said, Moataz & Robinson, Sherman, 1999. "Trade liberalization and complementary domestic policies: a rural-urban general equilibrium analysis of Morocco," TMD discussion papers 41, International Food Policy Research Institute (IFPRI).
    2. Bruno Venditto, 2004. "The Euromediterranean Free Trade Area: A New Form Of Regional Cooperation?," Development and Comp Systems 0408005, University Library of Munich, Germany.
    3. Das Gupta, Monica & Bongaarts, John & Cleland, John, 2011. "Population, poverty, and sustainable development : a review of the evidence," Policy Research Working Paper Series 5719, The World Bank.
    4. Ahmet Faruk Aysan & …mer Faruk Baykal & Marie-Ange Véganzonès–Varoudakis, 2011. "The Effects of Convergence in Governance on Capital Accumulation in the Black Sea Economic Cooperation Countries," Chapters, in: Mehmet Ugur & David Sunderland (ed.), Does Economic Governance Matter?, chapter 6, Edward Elgar Publishing.
    5. van de Walle, Dominique, 2011. "Lasting welfare effects of widowhood in a poor country," Policy Research Working Paper Series 5734, The World Bank.
    6. Newburry, William & Gardberg, Naomi A. & Sanchez, Juan I., 2014. "Employer Attractiveness in Latin America: The Association Among Foreignness, Internationalization and Talent Recruitment," Journal of International Management, Elsevier, vol. 20(3), pages 327-344.
    7. Narita, Daiju, 2010. "Climate policy, technology choice, and multiple equilibria in a developing economy," Kiel Working Papers 1590, Kiel Institute for the World Economy (IfW Kiel).
    8. Meltem Dayioğlu & Sirma Demir Şeker, 2016. "Social Policy and the Dynamics of Early Childhood Poverty in Turkey," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 17(4), pages 540-557, October.
    9. Mahtta, Richa & Joshi, P.K. & Jindal, Alok Kumar, 2014. "Solar power potential mapping in India using remote sensing inputs and environmental parameters," Renewable Energy, Elsevier, vol. 71(C), pages 255-262.
    10. Onder, Harun, 2012. "Trade and Climate Change: An Analytical Review of Key Issues," World Bank - Economic Premise, The World Bank, issue 86, pages 1-8, August.
    11. Andrew Zeitlin & Stefano Caria & Richman Dzene & Petr Janský & Emmanuel Opoku & Francis Teal, 2010. "Heterogeneous returns and the persistence of agricultural technology adoption," CSAE Working Paper Series 2010-37, Centre for the Study of African Economies, University of Oxford.
    12. N. Bloom, 2016. "Fluctuations in uncertainty," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 4.
    13. Ayala-Cantu, Luciano & Morando, Bruno, 2020. "Rental markets, gender, and land certificates: Evidence from Vietnam," Food Policy, Elsevier, vol. 94(C).
    14. Albert N. Honlonkou & Rashid M. Hassan, 2015. "Developing Countries' Response To The Clean Development Mechanism Under Imperfect Information And Transaction Costs," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-22.
    15. Mohamed Ali Marouani & Rim Mouelhi, 2016. "Contribution of Structural Change to Productivity Growth: Evidence from Tunisia," Journal of African Economies, Centre for the Study of African Economies, vol. 25(1), pages 110-132.
    16. Thomas Bassetti & Nikos Benos & Stelios Karagiannis, 2013. "CO 2 Emissions and Income Dynamics: What Does the Global Evidence Tell Us?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(1), pages 101-125, January.
    17. Myriam Ben Saâd & Giscard Assoumou-Ella, 2019. "Economic Complexity and Gender Inequality in Education: An Empirical Study," Economics Bulletin, AccessEcon, vol. 39(1), pages 321-334.
    18. Javier Herrera & Mireille Razafindrakoto & François Roubaud, 2013. "Les sciences sociales au service du débat démocratique au Sud:enjeux, supports, retombées. Résultats d'expériences dans le champ de l'économie et de la statistique," Working Papers DT/2013/02, DIAL (Développement, Institutions et Mondialisation).
    19. Simone Borghesi & Giorgia Giovannetti & Gianluca Iannucci & Paolo Russu, 2019. "The Dynamics of Foreign Direct Investments in Land and Pollution Accumulation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(1), pages 135-154, January.
    20. Arun S. Malik & Stephen C. Smith, 2012. "Adaptation To Climate Change In Low-Income Countries: Lessons From Current Research And Needs From Future Research," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-22.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:tmddps:38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.