Trade Policy Reform and Poverty Alleviation

Michalopoulos, Constantine; Hoekman, Bernard; Schiff, Maurice; Tarr, David

Trade Policy Reform and Poverty Alleviation

Autores

Michalopoulos, Constantine

Hoekman, Bernard

Schiff, Maurice

Tarr, David

Editor

World Bank, Washington, DC

Descripción

In this paper, developed as part of the World Bank's Poverty Reduction Strategy Sourcebook, the authors examine how to implement trade liberalization as part of a strategy for alleviating poverty in developing countries. They discuss trade policy instruments, institutions, complementary policies, sector issues, adjustment policies, and safety nets in an integrated approach to trade policy as a tool for poverty alleviation. The authors examine the patterns or models of trade policy that have been successful in alleviating poverty. They discuss the role of tariffs, nontariff barriers, contingent protection (such as safeguards and antidumping), special import regimes (such as duty drawback), export taxes, export subsidies, and trade-related institutions (such as standards, marketing, export finance, customs clearance, and regional trade arrangements). The authors also discuss policies that complement successful trade reform, including macroeconomic stability, a competitive exchange rate, flexible labor markets, competitive product markets, and policies that do not discriminate against foreigners in investment. They suggest approaches to policies and institutions in services and agriculture, key sectors in poverty reduction. They explain the roles of retraining and safety nets in dealing with the adjustment costs of trade liberalization. Finally, the authors elaborate guidelines for implementing trade reform and explain tools for assessing whether trade reform will help or harm the poor in particular sectors in the short run.

Palabras clave

ADJUSTMENT POLICIES, ADMINISTRATIVE PROCEDURES, AGRICULTURAL COMMODITIES, AGRICULTURE, ANTI- EXPORT BIAS, ANTI-EXPORT BIAS, ANTIDUMPING, ANTIDUMPING DUTY, ANTIDUMPING PROCEDURES, AVERAGE INCOME, AVERAGE LEVEL, BENCHMARKING, BUSINESS ENVIRONMENT, CARTEL, COMMERCIAL POLICY, COMPARATIVE ADVANTAGE, COMPETITIVE EXCHANGE, COMPETITIVE EXCHANGE RATE, COMPETITIVENESS, CONSIDERABLE DIFFERENCES, CONSUMER PROTECTION, CONSUMERS, COUNTRY DATA, CROSS COUNTRY, CUSTOMS, CUSTOMS CLEARANCE, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT, DEVELOPMENT RESEARCH, DOMESTIC INDUSTRY, DOMESTIC MARKET, DOMESTIC MARKETS, DOMESTIC PRODUCERS, DUTY DRAWBACK SCHEMES, ECONOMIC CONDITIONS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EMPIRICAL EVIDENCE, EMPIRICAL STUDIES, EMPLOYMENT, EXCHANGE RATE BIAS, EXPENDITURES, EXPORT BIAS, EXPORT INCENTIVES, EXPORT INDUSTRIES, EXPORT MARKET, EXPORT PRICE, EXPORT PRICES, EXPORT PROCESSING, EXPORT PROCESSING ZONE, EXPORT PROCESSING ZONES, EXPORT SUBSIDIES, EXPORT TAXES, EXPORTERS, EXPORTS, FACTORS OF PRODUCTION, FINAL GOODS, FINANCIAL SECTOR, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN FIRMS, FREE ACCESS, FREE TRADE, FUELS, GDP, GLOBAL ECONOMY, GROSS EXPORTS, GROWTH RATE, IMPACT OF TRADE, IMPACT OF TRADE LIBERALIZATION, IMPACT OF TRADE REFORMS, IMPORT COMPETITION, IMPORT CONTROLS, IMPORT SUBSTITUTION, IMPORT TARIFFS, INCOME, INCOME REDISTRIBUTION, INDIVIDUAL COUNTRIES, INEFFICIENCY, INTEREST RATES, INTERMEDIATE INPUTS, INTERNATIONAL MARKET, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, LABOR MARKETS, LIBERALIZATION OF TRADE, LONG RUN, LOW-INCOME COUNTRIES, MACROECONOMIC ENVIRONMENT, MACROECONOMIC MANAGEMENT, MACROECONOMIC POLICIES, MARKET ECONOMIES, MARKET FAILURES, MARKET POWER, MONOPOLIES, NEGATIVE EFFECT, NEGATIVE IMPACT, NON-TARIFF BARRIERS, NON-TRADITIONAL EXPORTS, OPENNESS, OUTPUT GROWTH, OVERVALUED EXCHANGE, PER CAPITA INCOMES, POLICY CHANGES, POLICY INSTRUMENT, POLICY RESEARCH, POLITICAL ECONOMY, POLITICAL STABILITY, POOR POLICIES, POVERTY ALLEVIATION, POVERTY LINE, POVERTY REDUCTION, POVERTY REDUCTION STRATEGIES, POVERTY REDUCTION STRATEGY, PRICE DISCRIMINATION, PRICE OF IMPORTS, PRIVATE PROPERTY, PRO-POOR, PRODUCT MARKETS, PRODUCTIVITY, PROPERTY RIGHTS, PUBLIC SECTOR, QUOTAS, RAPID GROWTH, REAL EXCHANGE RATE, REDISTRIBUTIVE EFFECTS, REDISTRIBUTIVE POLICIES, REDUCED POVERTY, REDUCING POVERTY, REFORM PROGRAMS, REGIONAL INTEGRATION, REGIONAL TRADE, RELATIVE PRICES, RENT SEEKING, RESOURCE ALLOCATION, RURAL AREAS, RURAL POOR, SAFEGUARD ACTIONS, SAFETY NET, SAFETY NETS, SIGNIFICANT EFFECT, TARIFF BARRIERS, TARIFF RATES, TARIFF STRUCTURES, TAXATION, TRADE, TRADE BARRIERS, TRADE FINANCE, TRADE INTEGRATION, TRADE LIBERALIZATION, TRADE POLICIES, TRADE POLICY, TRADE POLICY INSTRUMENTS, TRADE POLICY REFORM, TRADE PROTECTION, TRADE REFORM, TRADE REFORMS, TRADE REGIME, TRADE REGIMES, TRADE REMEDIES, UNEMPLOYMENT, UNIFORM TARIFFS, UNSKILLED LABOR, WAGES, WELFARE GAINS, WORLD MARKETS, WORLD PRICES, WTO, ZERO TARIFFS