Impacts of Trade Liberalization on Poverty and Inequality in Argentina

Using the most recent estimates of agricultural price distortions, this chapter studies the economic, poverty, and income inequality impacts of both global and domestic trade reform in Argentina, with a special focus on export taxes. Argentina offers an interesting case study as the only large agricultural exporter that has, at many points in its history, applied export taxes to several of its agricultural products. The chapter combines results from a global economy-wide model (World Bank's linkage model), a national computable general equilibrium (CGE) model, and micro-simulations. The results suggest that liberalization of world trade (including subsidies and import taxes, but not export taxes), both for agricultural and non-agricultural goods, reduces poverty and inequality in Argentina. However, if only agricultural goods are included, indicators for poverty and inequality do not improve and even deteriorate somewhat. This is particularly the case if export taxes are eliminated. The chapter discusses the possible reasons for those results, offers some caveats, and suggests some lines for further research.

Bibliographic Details

Main Authors:	Cicowiez, Martín, Díaz-Bonilla, Carolina, Díaz-Bonilla, Eugenio
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2009-06
Subjects:	ACCOUNTING, AGGREGATE DEMAND, AGRICULTURAL EXPORTS, AGRICULTURAL GROWTH, AGRICULTURAL PRODUCTION, AGRICULTURAL SECTOR, AGRICULTURAL TRADE, AGRICULTURE, BANKING CRISES, BANKING SYSTEM, BASE YEAR, CAPITAL THEORY, CASH TRANSFERS, CENTRAL BANK, COMMODITIES, COMMODITY, COMMODITY PRICES, COMPETITIVE EXCHANGE, COMPETITIVE EXCHANGE RATE, COMPETITIVENESS, CONSUMER PRICE INDEX, CONVERTIBILITY PLAN, CURRENCY, CURRENCY BOARD, CURRENCY BOARD ARRANGEMENT, CURRENT ACCOUNT DEFICIT, CURRENT ACCOUNT DEFICITS, DEBT, DEBT PAYMENTS, DEBTS, DEMAND CURVE, DEMAND CURVES, DEMOGRAPHIC, DEPOSITS, DEVALUATION, DEVALUATIONS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT ECONOMICS, DEVELOPMENT PATH, DEVELOPMENT POLICY, DEVELOPMENT RESEARCH, DOMESTIC CURRENCY, DOMESTIC PRICE, DOMESTIC PRICES, ECONOMIC ANALYSIS, ECONOMIC CRISES, ECONOMIC GROWTH, ECONOMIC HISTORY, ECONOMIC PERFORMANCE, ECONOMIC SITUATION, ECONOMIC STAGNATION, ECONOMIC STRUCTURE, ELASTICITY, EMPLOYMENT MULTIPLIER, EMPLOYMENT OPPORTUNITIES, EQUILIBRIUM, EQUIPMENT, EXCHANGE RATE, EXPENDITURES, EXPORT MARKETS, EXPORT TAXES, EXPORTER, EXPORTS, EXTERNAL DEBT, EXTERNAL DEBTS, EXTERNAL SHOCKS, EXTERNAL TRADE, EXTREME POVERTY, FACTOR MARKETS, FACTOR PRICES, FINANCIAL SERVICES, FINANCIAL SYSTEM, FISCAL CONSOLIDATION, FISCAL DEFICIT, FOOD PRICE, FOOD PRICES, FREE TRADE, FULL EMPLOYMENT, GDP, GDP DEFLATOR, GENERAL EQUILIBRIUM, GINI COEFFICIENT, GLOBAL ECONOMY, GLOBAL TRADE, GLOBALIZATION, GROWTH EFFECT, GROWTH ELASTICITY, GROWTH RATES, HIGH GROWTH, HIGH UNEMPLOYMENT, HIGH VOLATILITY, HOLDINGS, HOUSEHOLD DATA, HUMAN CAPITAL, IMPORT TARIFFS, INCOME, INCOME DATA, INCOME DISTRIBUTION, INCOME EFFECT, INCOME INEQUALITY, INCOME TAX, INCOME TAXES, INCREASE POVERTY, INDEBTEDNESS, INDUSTRIALIZATION, INEQUALITY RESULTS, INFLATION, INNOVATION, INSTRUMENT, INTEREST RATES, INTERNATIONAL MARKETS, LABOR DEMAND, LABOR MARKET, LEVEL OF INFLATION, LIBERALIZATIONS, MACROECONOMIC CRISES, MACROECONOMIC EFFECTS, MACROECONOMIC PERFORMANCE, MACROECONOMIC VARIABLES, MACROECONOMIC VULNERABILITY, MARGINAL PROPENSITY, MARKET PRICES, MARKET WAGES, MICRO MODEL, MONETARY POLICY, MONOPOLY, MULTILATERAL TRADE, MULTIPLIER EFFECTS, NATIONAL ACCOUNTS, NATIONAL POVERTY LINE, NEGATIVE EFFECT, NEGATIVE IMPACT, NOMINAL WAGES, OIL PRICES, OVERVALUATION, OVERVALUED EXCHANGE, OVERVALUED EXCHANGE RATES, PARTIAL EQUILIBRIUM ANALYSIS, PER CAPITA INCOME, PER CAPITA INCOMES, POLICY ANALYSIS, POLICY CHANGE, POLICY DEBATE, POLICY INTERVENTIONS, POLICY REFORMS, POLICY RESEARCH, POLITICAL ECONOMY, POSITIVE EFFECTS, POVERTY ALLEVIATION, POVERTY IMPACT, POVERTY INCREASES, POVERTY LINES, POVERTY RATES, POVERTY REDUCTION, PRICE DISTORTIONS, PRICE INCREASES, PRIMARY PRODUCTS, PRO-POOR, PRO-POOR GROWTH, PRODUCTIVITY, PUBLIC DEBT, PUBLIC EXPENDITURES, PUBLIC SECTOR, REAL EXCHANGE RATE, REAL GDP, REAL WAGES, REDUCING INEQUALITY, REFORM PROGRAM, RELATIVE IMPORTANCE, RELATIVE PRICES, RENEGOTIATION, RESERVES, RESIGNATION, RETIREMENT, RETIREMENT SYSTEM, RETURNS, SAFETY, SAFETY NETS, SAVINGS, SECTORAL COMPOSITION, SEMISKILLED LABOR, SMALL COUNTRY, SOCIAL SECURITY, TAX, TAX RATE, TAX RATES, TAX REGIME, TAX REVENUES, TECHNOLOGICAL INNOVATION, TRADE BALANCE, TRADE LAW, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADE OPENNESS, TRADE POLICIES, TRADE POLICY, TRADE REFORMS, TRADE TAX, TRUST FUNDS, TURNOVER, UNEMPLOYED, UNEMPLOYED WORKERS, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNSKILLED LABOR, URBAN AREAS, VALUE ADDED, VOLATILITY, WAGES, WORLD MARKET, WORLD TRADE, WTO,
Online Access:	http://documents.worldbank.org/curated/en/504531468004766639/Impacts-of-trade-liberalization-on-poverty-and-inequality-in-Argentina http://hdl.handle.net/10986/28170
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