Trade liberalisation and inequalities in Nepal: A CGE analysis

This source preferred by Jens Holscher

Authors: Holscher, J., Acharya, S. and Perugini, C.

http://eprints.brighton.ac.uk/11018/

Journal: Economic Modelling

Volume: 29

Pages: 2543-2557

Publisher: Elsevier

In this paper we examine the effects of trade liberalisation on inequality in the small developing country of Nepal. We use a Computable General Equilibrium approach applied to a newly developed social accounting matrix, simulating three liberalisation scenarios: (i) import liberalisation; (ii) export liberalisation; and (iii) import and export liberalisations implemented together under different exchange rate regimes. Outcomes reveal that industry reallocation following liberalisation does not respond to classical trade theory expectations about factor intensity and abundance. On the distributive side, liberalisation seems to increase the high-skilled/low-skilled gap and favour rich households relatively more. However, since under fixed exchange rate also the two poorest household groups increase their income levels, liberalisation may also expected to be beneficial for poverty alleviation.

This data was imported from Scopus:

Authors: Acharya, S., Hölscher, J. and Perugini, C.

Journal: Economic Modelling

Volume: 29

Issue: 6

Pages: 2543-2557

ISSN: 0264-9993

DOI: 10.1016/j.econmod.2012.08.008

In this paper we examine the effects of trade liberalisation on inequality in the small developing country of Nepal. We use a Computable General Equilibrium approach applied to a newly developed social accounting matrix, simulating three liberalisation scenarios: (i) import liberalisation; (ii) export liberalisation; and (iii) import and export liberalisations implemented together under different exchange rate regimes. Outcomes reveal that industry reallocation following liberalisation does not respond to classical trade theory expectations about factor intensity and abundance. On the distributive side, liberalisation seems to increase the high-skilled/low-skilled gap and favour rich households relatively more. However, since under fixed exchange rate also the two poorest household groups increase their income levels, liberalisation may also expected to be beneficial for poverty alleviation. © 2012 Elsevier B.V.

This data was imported from Web of Science (Lite):

Authors: Acharya, S., Hoelscher, J. and Perugini, C.

Journal: ECONOMIC MODELLING

Volume: 29

Issue: 6

Pages: 2543-2557

ISSN: 0264-9993

DOI: 10.1016/j.econmod.2012.08.008

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