MPIA-11043 Agricultural trade liberalization, productivity growth and poverty alleviation: A dynamic general equilibrium analysis

Abstract

Computable General Equilibrium (CGE) models have gained continuously in popularity as an empirical tool for assessing the impact of trade liberalization on growth, poverty and equity. In recent years, there have been attempts to extend the scope of CGE trade models to the analysis of the interaction of agricultural growth, poverty and income distribution. Conventional models ignore however the channels linking technical change in agriculture, product differentiation, trade openness and poverty. This study seeks to incorporate econometric evidence of these linkages into a dynamic sequential CGE model including product differentiation, to estimate the impact of alternative trade liberalization scenarios on welfare, poverty and equity. The analysis uses the concept of the metafrontier function in investigating the influence of trading on agricultural technological change, productivity growth and product varieties. The estimated productivity gains induced from higher levels of trade are combined with a general equilibrium analysis of trade liberalization to evaluate the direct welfare benefits of poor farmers and the indirect income and prices outcomes. These effects are then used to infer the impact on poverty using the traditional top-down approach and the Tunisian household survey. The model is applied to Tunisian data using the social accounting matrix of 1998 and a 1995 survey of 2500 households.


Members

Project leader: Nadia Belhaj hassine

Project researchers: Hanene Ouertani | Abederrazak EL MEDDEB | Zied Ben Salem


Journal publication

Authors Co-Authors Title of paper Title of Economic Review Bibliographic references
Nadia Belhaj Hassine Trade Liberalization, Agricultural Productivity and Poverty in the Mediterranean Region European Review of Agricultural Economics

(2009) 36, p: 1-29.

Nadia Belhaj Hassine Trade, Human Capital, and Technology Diffusion in the Mediterranean Agricultural Sector Économie internationale

(2008) 113, p. 115-142.


Working Papers

Title Modified Size Comments Recommendations
Agricultural trade liberalization, productivity gain, and poverty alleviation: A General Equilibrium Analysis 2010-05-14 882.99KB 0 0

Policy Briefs

No policy briefs.


Final report

Title Modified Size Comments Recommendations
2010-03-03 169.64KB 1 1

Proposal

Title Modified Size Comments Recommendations
AGRICULTURAL TRADE LIBERALIZATION, PRODUCTIVITY GROWTH AND POVERTY ALLEVIATION: A DYNAMIC GENERAL EQUILIBRIUM ANALYSIS 2010-10-22 941 KB 1 1

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