TY  - CPAPER 
AB  - This paper main objective is providing an ex-ante assessment of the poverty and income distribution impacts of a Central America Free Trade Area agreement for Nicaragua. A general equilibrium macro model is used to simulate trade reform scenarios and to estimate their price effects, and a micro-module maps these price changes into variations of real incomes at the individual household level. A useful insight from this analysis is that even if the final total impact on poverty is not too large, its dispersion across households – due to their heterogeneity in terms of factor endowments, inputs use, commodity production, and consumption preferences – is significant and this should be taken into account when designing compensatory policies. Additionally a growth and redistribution decomposition shows that, at least in the short to medium run, redistribution can be as important as growth. A main policy advice emerges: to boost trade-induced poverty reductions, Nicaragua should consider enlarging its own liberalization to countries other than the US.
AU  - Bussolo, Maurizio
AU  - Niimi, Yoko
DA  - 2005
DA  - 2005
ID  - 331331
KW  - International Relations/Trade
KW  - Food Security and Poverty
L1  - https://ageconsearch.umn.edu/record/331331/files/1821.pdf
L2  - https://ageconsearch.umn.edu/record/331331/files/1821.pdf
L4  - https://ageconsearch.umn.edu/record/331331/files/1821.pdf
LA  - eng
LA  - English
LK  - https://ageconsearch.umn.edu/record/331331/files/1821.pdf
N1  - Presented at the 8th Annual Conference on Global Economic Analysis, Lübeck, Germany
N2  - This paper main objective is providing an ex-ante assessment of the poverty and income distribution impacts of a Central America Free Trade Area agreement for Nicaragua. A general equilibrium macro model is used to simulate trade reform scenarios and to estimate their price effects, and a micro-module maps these price changes into variations of real incomes at the individual household level. A useful insight from this analysis is that even if the final total impact on poverty is not too large, its dispersion across households – due to their heterogeneity in terms of factor endowments, inputs use, commodity production, and consumption preferences – is significant and this should be taken into account when designing compensatory policies. Additionally a growth and redistribution decomposition shows that, at least in the short to medium run, redistribution can be as important as growth. A main policy advice emerges: to boost trade-induced poverty reductions, Nicaragua should consider enlarging its own liberalization to countries other than the US.
PY  - 2005
PY  - 2005
T1  - Do the Poor benefit from Regional Trade Pacts? An Illustration from the Central America Free Trade Agreement in Nicaragua
TI  - Do the Poor benefit from Regional Trade Pacts? An Illustration from the Central America Free Trade Agreement in Nicaragua
UR  - https://ageconsearch.umn.edu/record/331331/files/1821.pdf
VL  - 2004
Y1  - 2005
ER  -