1. Global Poverty and Distributional Impacts of Agricultural Distortions
- Author
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Bussolo, Maurizio, De Hoyos, Rafael, and Medvedev, Denis
- Subjects
REDUCTION IN POVERTY ,EXPORT SUBSIDIES ,REAL INCOME ,AGRICULTURAL REFORM ,GLOBAL POVERTY ,VALUE ADDED ,EXTREME POVERTY ,WELFARE MEASURE ,DISTRIBUTIONAL EFFECTS ,HOUSEHOLD INCOMES ,SKILL LEVEL ,POLICY REFORM ,EXTREMELY POOR HOUSEHOLDS ,CONSUMER PRICES ,EXPORT MARKETS ,NATIONAL ECONOMIES ,INCOME ,REAL WAGE ,DECOMPOSITION ANALYSIS ,AGRICULTURAL SECTORS ,TRADE NEGOTIATIONS ,COMPETITIVENESS ,AGRICULTURAL WAGES ,TARIFF RATE ,CONSUMER PRICE INDEX ,POOR GROWTH ,PER CAPITA INCOME ,TRADE AGREEMENTS ,AGRICULTURAL IMPORTS ,MACROECONOMIC MODELS ,EMPLOYMENT IN AGRICULTURE ,NEGATIVE RELATIONSHIP ,POLICY REFORMS ,FARMERS ,SKILLED WORKERS ,PRICE INCREASES ,IMPORT TARIFF ,INCOME SHARE ,HIGHER INEQUALITY ,REAL WAGES ,GLOBAL ECONOMY ,PURCHASING POWER ,TRADE BARRIERS ,LABOUR EARNINGS ,INCOME INEQUALITY ,STRUCTURAL CHANGE ,POVERTY REDUCTION ,EXPORT ,INCOME LEVELS ,RELATIVE WAGES ,PRICE CHANGES ,IMPORT BARRIERS ,MULTILATERAL TRADE ,WAGE PREMIUM ,WEALTH ,AGRICULTURAL MARKET ,CONSUMERS ,AGRICULTURAL PRICE SUPPORTS ,COMBINES ,GEOGRAPHIC REGION ,CONSUMPTION DATA ,INCOME DATA ,WTO ,ECONOMIC REVIEW ,GDP ,UTILITY FUNCTION ,BASE YEAR ,POVERTY OUTCOMES ,PRICE INDICES ,EXPORTS ,GDP DEFLATOR ,GENERAL EQUILIBRIUM MODEL ,INTERNATIONAL TRADE ,FARM OUTPUT ,POOR PEOPLE ,AGRICULTURAL PRICES ,PREFERENTIAL ACCESS ,FARM PRODUCTS ,AGRICULTURAL GOODS ,URUGUAY ROUND ,CARIBBEAN REGION ,INEQUALITY DECOMPOSITION ,DEVELOPING COUNTRIES ,GLOBAL MARKETS ,HOUSEHOLD SIZE ,REAL GDP ,POVERTY LINES ,AGRICULTURAL WAGE ,INCOME DISTRIBUTIONS ,POVERTY ALLEVIATION ,INCREASED INEQUALITY ,REGIONAL TRADING AGREEMENTS ,AGRICULTURAL ACTIVITIES ,TRADE NEGOTIATION ,INEQUALITY COEFFICIENT ,POVERTY LINE ,PUBLIC GOODS ,AGRICULTURAL GROUPS ,INEQUALITY RESULTS ,INCOME DISTRIBUTION DATA ,INEQUALITY MEASURE ,HOUSEHOLD HEAD ,EXOGENOUS CHANGES ,TRADE LIBERALIZATION ,HOUSEHOLD PER CAPITA INCOME ,RATE QUOTAS ,ECONOMIC GROWTH ,EXCHANGE RATES ,FARM ,AVERAGE HOUSEHOLD INCOME ,FARM LABOR ,DOMESTIC MARKET ,EXTREME POVERTY LINE ,AGRICULTURAL PRODUCTION ,HOUSEHOLD WELFARE ,CONSUMPTION PER CAPITA ,RESOURCE ALLOCATION ,MEASUREMENT ERRORS ,FOOD PRICES ,DISTRIBUTIONAL EFFECT ,AGRICULTURAL WORKER ,PRODUCTION COSTS ,AGRICULTURAL MARKETS ,GINI COEFFICIENT ,AGRICULTURAL TRADE ,CONSUMPTION INCREASES ,AGRICULTURAL PRODUCERS ,TRADE POLICY ,WORLD TRADE ORGANIZATION ,AVERAGE INCOMES ,PRIMARY EDUCATION ,INCOME DISPARITIES ,NEGATIVE SHOCK ,AGRICULTURAL PRICE ,REGIONAL DIFFERENCES ,AGRICULTURAL LIBERALIZATION ,AGRICULTURAL POPULATION ,DEVELOPING WORLD ,INTERNATIONAL MARKETS ,REGRESSION ANALYSIS ,WAGES ,PRODUCER INCENTIVES ,NATIONAL INCOME ,LABOR MARKET ,INCOME REDISTRIBUTION ,REGIONAL PATTERN ,ECONOMIC EXPANSION ,RELATIVE PRICES ,LOW INCOME ,TRADE POLICIES ,VOLUME ,WELFARE INDICATOR ,AGRICULTURAL POLICY ,HOUSEHOLD SURVEYS ,CONSUMPTION EXPENDITURE ,AGRICULTURE ,DEVELOPED COUNTRIES ,ECONOMIC THEORY ,AGRICULTURAL INCENTIVES ,AGRICULTURAL TRADE LIBERALIZATION ,MEAN INCOMES ,EMPIRICAL ANALYSIS ,INCOME DISTRIBUTION ,FOOD CONSUMPTION ,LOCAL FARMERS ,AVERAGE INCOME ,DISTRIBUTIONAL CHANGES ,FARM HOUSEHOLDS ,PROPORTIONAL IMPACT ,REGIONAL PATTERNS ,INCOME SOURCE ,TRADE DISPUTES ,TRANSITION ECONOMIES ,AGRICULTURAL INCOMES ,AGRICULTURAL SECTOR ,INCIDENCE OF POVERTY ,LDCS ,ECONOMIC POLICY ,HOUSEHOLD INCOME ,ABSOLUTE POVERTY ,POLICY RESEARCH ,POVERTY INCIDENCE ,GROWTH RATE ,PER CAPITA CONSUMPTION ,AGRICULTURAL WORKERS ,CONSUMER PREFERENCES ,EMPIRICAL RESULTS ,FOOD MARKETS ,DEVELOPING REGIONS ,POOR HOUSEHOLDS ,AGRICULTURAL PRODUCTS ,FOOD PRODUCTS ,AGRICULTURAL POPULATIONS ,POST-REFORM ,FARM COMMODITIES ,POWER PARITY ,INCOME GAINS ,CAPITAL ACCUMULATION ,REDISTRIBUTIVE EFFECTS ,COUNTRY-SPECIFIC CHARACTERISTICS ,POVERTY CHANGES - Abstract
This paper assesses the potential impacts of the removal of agricultural and other trade distortions using a newly developed dataset and methodological approach for evaluating the global poverty and inequality effects of policy reforms. It finds that liberalization of agriculture will increase global extreme poverty (US$1 a day) slightly and by almost 1 percent if other goods trade is also liberalized; but the number of people living on less than $2 a day will fall by almost 1 percent. Beneath these small aggregate changes, most countries witness a substantial reduction in poverty while South Asia where half of the world's poor reside will experience an increase in extreme (but not moderate) poverty incidence due to high rates of protection afforded to its unskilled labor-intensive agricultural sectors. The distributional changes also are projected to be mild, but again exhibit a strong regional pattern: inequality falls in Latin America, which is characterized by high initial inequality, and rises in South Asia, has relatively low income inequality.
- Published
- 2009