GTAP Resources: Resource Display
| GTAP Resource #1690 |
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"Do the Poor benefit from Regional Trade Pacts? An Illustration from the Central America Free Trade Agreement in Nicaragua" Authors: Bussolo, Maurizio and Yoko Niimi Abstract This paper main objective is providing an ex-ante assessment of the poverty and income distribution impacts of a Central America Free Trade Area agreement for Nicaragua. A general equilibrium macro model is used to simulate trade reform scenarios and to estimate their price effects, and a micro-module maps these price changes into variations of real incomes at the individual household level. A useful insight from this analysis is that even if the final total impact on poverty is not too large, its dispersion across households – due to their heterogeneity in terms of factor endowments, inputs use, commodity production, and consumption preferences – is significant and this should be taken into account when designing compensatory policies. Additionally a growth and redistribution decomposition shows that, at least in the short to medium run, redistribution can be as important as growth. A main policy advice emerges: to boost trade-induced poverty reductions, Nicaragua should consider enlarging its own liberalization to countries other than the US. |
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Public Access  CAFTA and the Poor (373.6 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 4/15/2026 11:27:11 AM
