Global Income Distribution and Poverty in the Absence of Agricultural Distortions

This paper assesses the potential impacts of the removal of agriculture 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 and food could increase global extreme poverty (US$1 a day) by 0.2 percent and lower moderate poverty (US$2 a day) by 0.3 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-experiences an increase in extreme poverty incidence due to high rates of protection afforded to unskilled-intensive agricultural sectors. The distributional changes are likely to be mild, but exhibit a strong regional pattern. Inequality is likely to fall in regions such as Latin America, which are characterized by high initial inequality, and rise in regions like South Asia, characterized by low initial inequality.

Bibliographic Details

Main Authors:	De Hoyos, Rafael, Bussolo, Maurizio, Medvedev, Denis
Language:	English
Published:	2009-03-01
Subjects:	AGRICULTURAL ACTIVITIES, AGRICULTURAL INCOMES, AGRICULTURAL LIBERALIZATION, AGRICULTURAL POPULATION, AGRICULTURAL PRICES, AGRICULTURAL PRICING, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTOR, AGRICULTURAL SECTORS, AGRICULTURAL TRADE, AGRICULTURAL WAGE, AGRICULTURE, AVERAGE HOUSEHOLD INCOME, AVERAGE INCOME, AVERAGE INCOMES, BASE YEAR, CAPITAL ACCUMULATION, COMPETITIVENESS, CONSUMER PREFERENCES, CONSUMER PRICES, CONSUMERS, CONSUMPTION, CONSUMPTION DATA, CONSUMPTION EXPENDITURE, CONSUMPTION INCREASES, CONSUMPTION PER CAPITA, COUNTRY-SPECIFIC CHARACTERISTICS, DECOMPOSITION ANALYSIS, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING REGIONS, DEVELOPING WORLD, DEVELOPMENT, DEVELOPMENT ECONOMICS, DISTRIBUTION, DISTRIBUTIONAL CHANGES, DISTRIBUTIONAL EFFECT, DISTRIBUTIONAL EFFECTS, DOLLAR POVERTY INCIDENCE, ECONOMIC EXPANSION, ECONOMIC GROWTH, ECONOMIC OPPORTUNITIES, ECONOMIC POLICIES, ECONOMIC POLICY, ECONOMIC THEORY, ECONOMIC TRENDS, EMPIRICAL ANALYSIS, EMPIRICAL APPLICATION, EMPIRICAL LITERATURE, EMPLOYMENT IN AGRICULTURE, EXCHANGE RATE, EXCHANGE RATES, EXOGENOUS CHANGES, EXPORT MARKETS, EXPORT SUBSIDIES, EXPORT TAXES, EXPORTS, EXTREME POVERTY, EXTREME POVERTY LINE, FACTOR PRICES, FARM HOUSEHOLDS, FARM LABOR, FARMERS, FOOD CONSUMPTION, FOOD MARKETS, FOOD PRICES, FOOD PRODUCTS, GDP, GDP DEFLATOR, GINI COEFFICIENT, GINI INDEX, GLOBAL ECONOMY, GLOBAL LEVEL, GLOBAL POPULATION, GLOBAL POVERTY, GLOBAL VIEW, GOODS, GROUP INEQUALITY, GROWTH RATE, GROWTH RATES, HEAD COUNT RATIO, HIGH INCOME COUNTRIES, HIGHER INEQUALITY, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD LEVEL, HOUSEHOLD PER CAPITA INCOME, HOUSEHOLD SIZE, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, IMPORT TARIFFS, INCENTIVES, INCIDENCE OF POVERTY, INCOME, INCOME DATA, INCOME DISPARITIES, INCOME DISTRIBUTION, INCOME DISTRIBUTION DATA, INCOME DISTRIBUTIONS, INCOME GAINS, INCOME INEQUALITY, INCOME LEVELS, INCOME REDISTRIBUTION, INCOME SHARES, INCOME SOURCE, INCOMES CHANGE, INCOMES INCREASE, INCREASED INEQUALITY, INEQUALITY CHANGES, INEQUALITY DECOMPOSITION, INEQUALITY MEASURE, INEQUALITY OUTCOMES, INTERNATIONAL TRADE, LABOR MARKET, LEVEL OF DEVELOPMENT, LOW-INCOME COUNTRIES, MACROECONOMIC OUTCOMES, MEAN INCOMES, MEASUREMENT, MEASUREMENT ERRORS, MICRO DATA, MICRO MODEL, MIDDLE INCOME COUNTRIES, MILLENNIUM DEVELOPMENT GOALS, MINORITY, MULTILATERAL NEGOTIATIONS, MULTILATERAL TRADE, NATIONAL INCOME, NATIONALS, NEGATIVE RELATIONSHIP, OUTCOMES, PAYMENTS, PER CAPITA CONSUMPTION, PER CAPITA INCOME, PER-CAPITA INCOME, POLICIES, POLICY INTERVENTIONS, POLICY MESSAGES, POLICY REFORM, POLICY REFORMS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POOR GROWTH, POOR HOUSEHOLDS, POOR PEOPLE, POPULATION, POPULATION GROUP, POPULATION SIZE, POPULATION SUBGROUPS, POPULATIONS, POPULOUS COUNTRY, POST-REFORM, POVERTY CHANGES, POVERTY COMPARISONS, POVERTY ERADICATION, POVERTY INCIDENCE, POVERTY LINE, POVERTY LINES, POVERTY OUTCOMES, POVERTY REDUCTION, PRICE INCREASES, PRICES, PRIMARY EDUCATION, PRIMARY SCHOOL, PRO-POOR, PRO-POOR GROWTH, PRODUCT, PRODUCTION COSTS, PROGRESS, PUBLIC GOODS, PURCHASING POWER, PURCHASING POWER PARITY, REAL GDP, REAL INCOME, REAL INCOMES, REAL WAGE, REAL WAGES, REDISTRIBUTIVE EFFECTS, REDUCTION IN POVERTY, REGIONAL DIFFERENCES, REGIONAL GROWTH, REGIONAL LEVEL, REGRESSION ANALYSIS, RELATIVE WAGES, RESPECT, SECTORAL COMPOSITION, SKILL LEVEL, SKILLED WORKERS, STRUCTURAL CHANGE, TAXES, TRADE, TRADE BARRIERS, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADE POLICY, UNEQUAL COUNTRIES, UNSKILLED LABOR, URBAN BIAS, URUGUAY ROUND, USE PER CAPITA, UTILITY, UTILITY FUNCTION, VALUE, VALUE ADDED, VARIABLES, VIRGIN, WAGES, WELFARE, WELFARE INDICATOR, WELFARE MEASURE, WOMAN, WORLD POPULATION, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090302125636 https://hdl.handle.net/10986/4045
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