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Working Paper

The Poverty Impacts of Global Commodity Trade Liberalization

ABSOLUTE VALUE AGGREGATE POVERTY AGRICULTURAL COMMODITY AGRICULTURAL LAND AGRICULTURAL OUTPUT AGRICULTURAL POLICY AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURAL SECTORS AGRICULTURAL SELF-EMPLOYMENT AGRICULTURAL TRADE AVERAGE INCOME CHANGES IN POVERTY COMMODITY PRICES COMPARATIVE ADVANTAGE CONSUMER DEMAND CONSUMPTION BEHAVIOR CONSUMPTION DATA COUNTRY CASE COUNTRY SPECIFIC DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT RESEARCH DISTRIBUTIONAL EFFECTS ECONOMIC LITERATURE ECONOMIC POLICY ECONOMICS LITERATURE EXPENDITURE EXPORT SUBSIDIES EXPORTERS FARM EMPLOYMENT FARM HOUSEHOLDS FOOD EXPENDITURES FOOD GRAINS FOOD PRICE GLOBAL TRADE GOVERNMENT SPENDING GROWTH RATE HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS IMPACT ON POVERTY INCOME INCOME LEVELS INCOME TAX INCOME TAXES INCOME­SHARE INCREASE POVERTY INEQUALITY INSTRUMENT INTERNATIONAL MARKETS LABOR MARKET LONG RUN MARKET ACCESS MARKET CONDITIONS MARKET SEGMENTATION MEAT MIGRANT LABOR MISSING MARKETS NATIONAL POVERTY NATIONAL POVERTY HEADCOUNT NATIONAL SAVINGS NEGATIVE ENTRIES PER CAPITA CONSUMPTION POLICY MEASURES POLICY REFORMS POLITICAL ECONOMY POOR POOR COUNTRIES POOR HOUSEHOLDS POVERTY ALLEVIATION POVERTY ANALYSIS POVERTY CHANGE POVERTY CHANGES POVERTY INCREASES POVERTY LEVEL POVERTY LINE POVERTY RATE POVERTY REDUCING POVERTY REDUCTION PREFERENTIAL MARKET ACCESS PRICE CHANGES PRO-POOR REDUCING POVERTY RELATIVE IMPORTANCE RETURN RETURNS RICH COUNTRIES RURAL RURAL HOUSEHOLDS RURAL LABOR SAVINGS TARIFF REVENUE TAX TAX RATE TOTAL POVERTY TRADE BALANCE TRADE LIBERALIZATION TRADE POLICY TRANSFER PAYMENTS TRUST FUNDS UNDISTORTED PRICES UNSKILLED LABOR
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World Bank, Washington, DC
Africa | East Asia and Pacific | Latin America & Caribbean | South Asia
2017-09-07T16:28:36Z | 2017-09-07T16:28:36Z | 2009-06

This paper examines the poverty impacts of global merchandise trade reform by looking at a wide range of developing countries in Africa, Asia and Latin America. Overall, the authors find that trade reform tends to reduce poverty primarily through the inclusion of agricultural components. The majority of developing country sample experiences small poverty increases from non-agricultural reforms. The authors explore the relative poverty-friendliness of agricultural trade reforms in detail, examining the differential impacts on real after-tax factor returns of agricultural versus non-agricultural reforms. This analysis is extended to the distribution of households by looking at stratum-specific poverty changes. The author's findings indicate that the more favorable impacts of agricultural reforms are driven by increased returns to peasant farm households' labor as well as higher returns for unskilled wage labor. Finally, the authors examine the commodity-specific poverty impacts of trade reform for this sample of countries. The authors find that liberalization of food grains and other processed foods represent the largest contributions to poverty reduction. More specifically, it is tariff reform in these commodity markets that dominates the poverty increasing impacts of wealthy country subsidy removal.

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