Trade Liberalisation and Poverty in Nepal: A Computable General Equilibrium Micro Simulation Analysis

By J. Cockburn. 2006

266 citations recorded by the source corpus.

Concern is growing regarding the poverty impacts of trade liberalization. The strong general equilibrium effects of trade liberalization can only be properly analysed in a CGE model. However, the aggregate nature of CGE models is not suited to detailed poverty analysis. We bridge this gap by constructing a CGE model that explicitly models all households from a nationally representative household survey. We find complex income and consumption effects that would be missed in standard CGE models. Urban poverty falls and rural poverty increases as initial tariffs were highest for agriculture. Impacts increase with income level, resulting in rising income inequality.

Subfields: Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/7437bf178772dc918c74222f9ec3db3d0b6e88f2

How researchers see this paper

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In Economics and Econometrics

1. J. Reimer
2. Thomas W. Hertel
3. A. Kemal
4. R. Siddiqui
5. J. Round
6. W. Tyner

In Sociology and Political Science

1. Thomas W. Hertel
2. A. Kemal
3. J. Reimer
4. R. Siddiqui
5. J. Round

Citations in the corpus

• Constructing SAMs for Development Policy Analysis: Lessons Learned and Challenges Ahead (2003, methodology): “The most recent development in modelling is towards a micro-simulation approach and to model in detail the behaviour that is observed at the level of individual households and firms ( Cockburn, 2001; Robilliard et al., 2001; Vos & De Jong, 2003).7 This underscores the need to avoid compromising sub”
• Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis (2006, background): “Decaluwe, et al. (1999) and Cockburn (2002) explicitly incorporate poverty and income distribution in a CGE framework.”
• Predicting the poverty impacts of trade reform (2004, background): “…and Taylor (1980); Bourguignon and Morrison (1989, 1992), Bourguignon et al. (1991a, 1991b); Devarajan and van der Mensbrugghe (2000); Sadoulet and de Janvry (1992); Coxhead and Warr (1995); Bautista and Thomas (1997); Harrison et al. (2003a); Levin (2000); Chia et al. (1994); and Cockburn (2001).”