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This volume examines the relationship between trade liberalization
policies and income inequality in developing countries. Using
survey data for 54 developing countries, the book explores the
potential trade-off between the gains from trade and the
distribution of those gains and provides a quantification of the
inequality-adjusted welfare gains from trade. The book begins with
an introduction to the model and its methodology. Chapter 2 sets up
the model and derives the formulas for the welfare effects of trade
policy. Chapter 3 uses the tariff data and the survey data to
estimate those welfare effects in 54 countries. Chapter 4 discusses
the gains from trade and their distribution. Chapter 5 evaluates
and quantifies the trade-off between income gains and inequality
costs of trade. Chapter 6 presents robustness tests and results
from alternative models of the impacts of trade. The last chapter
reviews the Household Impacts of Trade database and dashboard,
which provides data for replication and a platform that allows
researchers to simulate agricultural tariff policy shocks.
Providing a comprehensive empirical analysis of the effects of
trade policy on inequality in developing countries, this volume
will be of interest to researchers and students of economic
inequality, development, and international trade as well as
policymakers interested in the inequality and poverty consequences
of trade policy.
This volume examines the relationship between trade liberalization
policies and income inequality in developing countries. Using
survey data for 54 developing countries, the book explores the
potential trade-off between the gains from trade and the
distribution of those gains and provides a quantification of the
inequality-adjusted welfare gains from trade. The book
begins with an introduction to the model and its methodology.
Chapter 2 sets up the model and derives the formulas for the
welfare effects of trade policy. Chapter 3 uses the tariff data
and the survey data to estimate those welfare effects in 54
countries. Chapter 4 discusses the gains from trade and their
distribution. Chapter 5 evaluates and quantifies the trade-off
between income gains and inequality costs of trade. Chapter 6
presents robustness tests and results from alternative models of
the impacts of trade. The last chapter reviews the Household
Impacts of Trade database and dashboard, which provides data for
replication and a platform that allows researchers to simulate
agricultural tariff policy shocks. Providing a
comprehensive empirical analysis of the effects of trade policy on
inequality in developing countries, this volume will be of interest
to researchers and students of economic inequality, development,
and international trade as well as policymakers interested in the
inequality and poverty consequences of trade policy.
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