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Distributional effects of preferential and multilateral trade liberalization: the case of Paraguay

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  • Elizabeth Jane Casabianca

Abstract

In this paper I apply Porto (2006) to Paraguay using household level data. The aim is to assess the distributional impact of the preferential and multilateral trade liberalization in a small member country. I also follow Nicita (2009) assuming incomplete pass-through on prices of traded goods which in turn influence both household consumption and earnings of household members in the labour market. I estimate these effects highlighting the difference between the impact of the preferential trade agreement and the multilateral one. Finally, I am able to depict if and who trade integration has benefited.

Suggested Citation

  • Elizabeth Jane Casabianca, 2012. "Distributional effects of preferential and multilateral trade liberalization: the case of Paraguay," FIW Working Paper series 083, FIW.
    • Handle: RePEc:wsr:wpaper:y:2012:i:083
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    More about this item

    Keywords

    Household welfare; Paraguay; Pass-through; Trade and Poverty;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • F1 - International Economics - - Trade
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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