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Who Gains from Free Trade - Export-Led Growth, Inequality and Poverty in Latin America (Hardcover)
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Who Gains from Free Trade - Export-Led Growth, Inequality and Poverty in Latin America (Hardcover)
Series: Routledge Studies in Development Economics
Expected to ship within 12 - 17 working days
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Since the late 1980s, almost all Latin American countries have gone
through a process of far-reaching economic reforms, featuring in
particular trade, financial and capital account liberalization. At
first the reforms seemed to be working as promised and trade
expanded. However, at the turn of the century, the economies have
shown unstable and rather dismal growth. Some argue trade
liberalization is partly to be blamed for this.
"Who Gains from Free Trade" examines the extent to which trade
reforms have been an important source of the slowdown of economic
growth, rising inequality and rising poverty as observed in many
parts of the region. This volume presents an comprehensive analysis
of this important topic, utilizing research based on 16 country
narratives of policy reform and economic performance; rigorous
general equilibrium (CGE) modelling of the economy-wide effects of
trade reform for all country cases; alongside application of an
innovative method of microsimulations to assess the employment and
factor income distribution impact of policy reforms on poverty and
inequality at the household level.
The study finds that trade liberalization and the switch to
export-led growth are not the cause of the growth slowdown in Latin
America. Nor are they the cause of rising poverty and inequality.
If anything, the impact on growth and poverty in general has been
positive, but very small. Thus, further trade opening is neither
the solution to the region's economic woes, nor should we expect
any disastrous implications for aggregate poverty.
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