Who Benefited from Trade Liberalization in Mexico? Measuring the Effects on Household Welfare

dc.creatorNicita, Alessandro
dc.date2013-08-02T21:02:02Z
dc.date2013-08-02T21:02:02Z
dc.date2004-04
dc.date.accessioned2026-07-01T01:21:39Z
dc.descriptionThis study performs an ex-post analysis of the effects of the trade liberalization in Mexico between 1989 and 2000, taking into account regional differences in the Mexican economy. The effects of trade liberalization are first translated into changes in regional prices and wages. Those estimates are plugged into a farm-household model to estimate the effect on households' welfare. The findings suggest that trade liberalization has affected domestic prices and labor income differently both across income groups and geographically across the country, hence producing diverse outcomes on different households. Regarding prices, the results indicate that trade liberalization has lowered relative prices of most non-animal agricultural products and, while reducing the cost of consumption, has reduced households' agricultural income, widening the income gap between urban and rural areas. The findings also show that trade liberalization has had diverse effects on wage rates. Skilled workers, for which trade liberalization has produced an increase in wages, have benefited relative to unskilled workers. Wages of unskilled workers have in many regions decreased as a result of trade liberalization. Similar differences are found in the geographic distribution of the benefits of trade liberalization, with the states closest to the U. S. border gaining threefold more relative to the least developed states in the south. Therefore trade liberalization, although beneficial, has contributed to an increase in inequality between the south and the north of the country, urban and rural areas, and skilled and unskilled labor. From a poverty perspective, the trade liberalization that occurred between 1989 and 2000 has had the direct effect of reducing poverty by about 3 percent, therefore lifting approximately 3 million individuals out of poverty.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2004/04/3335911/benefited-trade-liberalization-mexico-measuring-effects-household-welfare
dc.identifierhttps://hdl.handle.net/10986/14777
dc.identifierhttps://doi.org/10.1596/1813-9450-3265
dc.identifier.urihttp://hdl.handle.net/123456789/417385
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, D.C.
dc.relationPolicy Research Working Paper;No.3265
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectAGRICULTURAL PRODUCTS
dc.subjectAGRICULTURE
dc.subjectAPPAREL
dc.subjectAVERAGE PRICES
dc.subjectAVERAGE TARIFF
dc.subjectBORDER PRICE
dc.subjectCAPITAL FLOWS
dc.subjectCHANGES IN TRADE
dc.subjectCOMPETITIVE PRESSURES
dc.subjectCONSUMERS
dc.subjectCOST OF LIVING
dc.subjectDEMAND ELASTICITY
dc.subjectDEVALUATION
dc.subjectDISEQUILIBRIUM
dc.subjectDISPOSABLE INCOME
dc.subjectDOMESTIC MARKET
dc.subjectDOMESTIC MARKETS
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMIC CRISIS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC POLICIES
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC THEORY
dc.subjectELASTICITY
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPLOYMENT
dc.subjectEQUILIBRIUM
dc.subjectEXCHANGE RATE
dc.subjectEXPENDITURES
dc.subjectFACTOR ENDOWMENTS
dc.subjectFACTOR MARKETS
dc.subjectFOREIGN CURRENCY
dc.subjectGDP
dc.subjectIMPACT OF TRADE
dc.subjectIMPACT OF TRADE POLICIES
dc.subjectIMPORT PRICES
dc.subjectIMPORTS
dc.subjectINCOME
dc.subjectINCOME ADJUSTMENTS
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME EFFECT
dc.subjectINCOME ELASTICITIES
dc.subjectINCOME GROUPS
dc.subjectINDIFFERENCE CURVES
dc.subjectINFLATION
dc.subjectINFLATION RATE
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectMARGINAL UTILITY
dc.subjectMARKET IMPERFECTIONS
dc.subjectOPENNESS
dc.subjectPOVERTY LINE
dc.subjectPRICE CHANGES
dc.subjectPRICE EFFECT
dc.subjectPRICE ELASTICITIES
dc.subjectPRICE ELASTICITY
dc.subjectPRICE ELASTICITY OF DEMAND
dc.subjectPRICE INDEXES
dc.subjectPRODUCERS
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTION FUNCTION
dc.subjectPROFIT MARGIN
dc.subjectPURCHASING
dc.subjectPURCHASING POWER
dc.subjectREAL INCOME
dc.subjectREAL WAGES
dc.subjectSPREAD
dc.subjectSUPPLIERS
dc.subjectTARIFF RATE
dc.subjectTARIFF RATES
dc.subjectTARIFF REDUCTION
dc.subjectTARIFF REVENUE
dc.subjectTARIFF SCHEDULE
dc.subjectTIME SERIES
dc.subjectTRADE COSTS
dc.subjectTRADE FLOWS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE LIBERALIZATION PROCESS
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRADE REFORMS
dc.subjectTRADE RESTRICTIONS
dc.subjectTRANSACTION COSTS
dc.subjectTRANSPORT COSTS
dc.subjectUNSKILLED LABOR
dc.subjectUNSKILLED WORKERS
dc.subjectUTILITY FUNCTION
dc.subjectWAGE DIFFERENTIALS
dc.subjectWAGE GAP
dc.subjectWAGE RATE
dc.subjectWAGE RATES
dc.subjectWAGES TRADE
dc.subjectPOVERTY
dc.subjectHOUSEHOLD ANALYSIS
dc.subjectEARNINGS
dc.subjectFARM HOUSEHOLD ECONOMIES
dc.subjectLABOR INCOME
dc.subjectAGRICULTURAL INCOME
dc.subjectINCOME GAPS
dc.subjectCONSUMPTION
dc.subjectTRADE LIBERALIZATION
dc.subjectGEOGRAPHIC DISTRIBUTION
dc.subjectSKILLED WORKERS
dc.titleWho Benefited from Trade Liberalization in Mexico? Measuring the Effects on Household Welfare

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