Global Poverty and Distributional Impacts of Agricultural Distortions

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.

Bibliographic Details

Main Authors:	De Hoyos, Rafael, Bussolo, Maurizio, Medvedev, Denis
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2009-06
Subjects:	ABSOLUTE POVERTY, AGRICULTURAL ACTIVITIES, AGRICULTURAL GOODS, AGRICULTURAL GROUPS, AGRICULTURAL IMPORTS, AGRICULTURAL INCENTIVES, AGRICULTURAL INCOMES, AGRICULTURAL LIBERALIZATION, AGRICULTURAL MARKET, AGRICULTURAL MARKETS, AGRICULTURAL POLICY, AGRICULTURAL POPULATION, AGRICULTURAL POPULATIONS, AGRICULTURAL PRICE, AGRICULTURAL PRICE SUPPORTS, AGRICULTURAL PRICES, AGRICULTURAL PRODUCERS, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTS, AGRICULTURAL REFORM, AGRICULTURAL SECTOR, AGRICULTURAL SECTORS, AGRICULTURAL TRADE, AGRICULTURAL TRADE LIBERALIZATION, AGRICULTURAL WAGE, AGRICULTURAL WAGES, AGRICULTURAL WORKER, AGRICULTURAL WORKERS, AGRICULTURE, AVERAGE HOUSEHOLD INCOME, AVERAGE INCOME, AVERAGE INCOMES, BASE YEAR, CAPITAL ACCUMULATION, CARIBBEAN REGION, COMBINES, COMPETITIVENESS, CONSUMER PREFERENCES, CONSUMER PRICE INDEX, CONSUMER PRICES, CONSUMERS, CONSUMPTION DATA, CONSUMPTION EXPENDITURE, CONSUMPTION INCREASES, CONSUMPTION PER CAPITA, COUNTRY-SPECIFIC CHARACTERISTICS, DECOMPOSITION ANALYSIS, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING REGIONS, DEVELOPING WORLD, DISTRIBUTIONAL CHANGES, DISTRIBUTIONAL EFFECT, DISTRIBUTIONAL EFFECTS, DOMESTIC MARKET, ECONOMIC EXPANSION, ECONOMIC GROWTH, ECONOMIC POLICY, ECONOMIC REVIEW, ECONOMIC THEORY, EMPIRICAL ANALYSIS, EMPIRICAL RESULTS, EMPLOYMENT IN AGRICULTURE, EXCHANGE RATES, EXOGENOUS CHANGES, EXPORT, EXPORT MARKETS, EXPORT SUBSIDIES, EXPORTS, EXTREME POVERTY, EXTREME POVERTY LINE, EXTREMELY POOR HOUSEHOLDS, FARM, FARM COMMODITIES, FARM HOUSEHOLDS, FARM LABOR, FARM OUTPUT, FARM PRODUCTS, FARMERS, FOOD CONSUMPTION, FOOD MARKETS, FOOD PRICES, FOOD PRODUCTS, GDP, GDP DEFLATOR, GENERAL EQUILIBRIUM MODEL, GEOGRAPHIC REGION, GINI COEFFICIENT, GLOBAL ECONOMY, GLOBAL MARKETS, GLOBAL POVERTY, GROWTH RATE, HIGHER INEQUALITY, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD PER CAPITA INCOME, HOUSEHOLD SIZE, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, IMPORT BARRIERS, IMPORT TARIFF, INCIDENCE OF POVERTY, INCOME, INCOME DATA, INCOME DISPARITIES, INCOME DISTRIBUTION, INCOME DISTRIBUTION DATA, INCOME DISTRIBUTIONS, INCOME GAINS, INCOME INEQUALITY, INCOME LEVELS, INCOME REDISTRIBUTION, INCOME SHARE, INCOME SOURCE, INCREASED INEQUALITY, INEQUALITY COEFFICIENT, INEQUALITY DECOMPOSITION, INEQUALITY MEASURE, INEQUALITY RESULTS, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, LABOR MARKET, LABOUR EARNINGS, LDCS, LOCAL FARMERS, LOW INCOME, MACROECONOMIC MODELS, MEAN INCOMES, MEASUREMENT ERRORS, MULTILATERAL TRADE, NATIONAL ECONOMIES, NATIONAL INCOME, NEGATIVE RELATIONSHIP, NEGATIVE SHOCK, PER CAPITA CONSUMPTION, PER CAPITA INCOME, POLICY REFORM, POLICY REFORMS, POLICY RESEARCH, POOR GROWTH, POOR HOUSEHOLDS, POOR PEOPLE, POST-REFORM, POVERTY ALLEVIATION, POVERTY CHANGES, POVERTY INCIDENCE, POVERTY LINE, POVERTY LINES, POVERTY OUTCOMES, POVERTY REDUCTION, POWER PARITY, PREFERENTIAL ACCESS, PRICE CHANGES, PRICE INCREASES, PRICE INDICES, PRIMARY EDUCATION, PRODUCER INCENTIVES, PRODUCTION COSTS, PROPORTIONAL IMPACT, PUBLIC GOODS, PURCHASING POWER, RATE QUOTAS, REAL GDP, REAL INCOME, REAL WAGE, REAL WAGES, REDISTRIBUTIVE EFFECTS, REDUCTION IN POVERTY, REGIONAL DIFFERENCES, REGIONAL PATTERN, REGIONAL PATTERNS, REGIONAL TRADING AGREEMENTS, REGRESSION ANALYSIS, RELATIVE PRICES, RELATIVE WAGES, RESOURCE ALLOCATION, SKILL LEVEL, SKILLED WORKERS, STRUCTURAL CHANGE, TARIFF RATE, TRADE AGREEMENTS, TRADE BARRIERS, TRADE DISPUTES, TRADE LIBERALIZATION, TRADE NEGOTIATION, TRADE NEGOTIATIONS, TRADE POLICIES, TRADE POLICY, TRANSITION ECONOMIES, URUGUAY ROUND, UTILITY FUNCTION, VALUE ADDED, VOLUME, WAGE PREMIUM, WAGES, WEALTH, WELFARE INDICATOR, WELFARE MEASURE, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/589601468156901139/Global-poverty-and-distributional-impacts-of-agricultural-distortions https://hdl.handle.net/10986/28154
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