De Hoyos, RafaelBussolo, MaurizioMedvedev, Denis2017-09-072017-09-072009-06https://hdl.handle.net/10986/28154This paper assesses the potential impacts of the removal of agricultural and other trade distortions using a newly developed dataset and methodological approach for evaluating the global poverty and inequality effects of policy reforms. It finds that liberalization of agriculture will increase global extreme poverty (US$1 a day) slightly and by almost 1 percent if other goods trade is also liberalized; but the number of people living on less than $2 a day will fall by almost 1 percent. Beneath these small aggregate changes, most countries witness a substantial reduction in poverty while South Asia where half of the world's poor reside will experience an increase in extreme (but not moderate) poverty incidence due to high rates of protection afforded to its unskilled labor-intensive agricultural sectors. The distributional changes also are projected to be mild, but again exhibit a strong regional pattern: inequality falls in Latin America, which is characterized by high initial inequality, and rises in South Asia, has relatively low income inequality.en-USCC BY 3.0 IGOABSOLUTE POVERTYAGRICULTURAL ACTIVITIESAGRICULTURAL GOODSAGRICULTURAL GROUPSAGRICULTURAL IMPORTSAGRICULTURAL INCENTIVESAGRICULTURAL INCOMESAGRICULTURAL LIBERALIZATIONAGRICULTURAL MARKETAGRICULTURAL MARKETSAGRICULTURAL POLICYAGRICULTURAL POPULATIONAGRICULTURAL POPULATIONSAGRICULTURAL PRICEAGRICULTURAL PRICE SUPPORTSAGRICULTURAL PRICESAGRICULTURAL PRODUCERSAGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTSAGRICULTURAL REFORMAGRICULTURAL SECTORAGRICULTURAL SECTORSAGRICULTURAL TRADEAGRICULTURAL TRADE LIBERALIZATIONAGRICULTURAL WAGEAGRICULTURAL WAGESAGRICULTURAL WORKERAGRICULTURAL WORKERSAGRICULTUREAVERAGE HOUSEHOLD INCOMEAVERAGE INCOMEAVERAGE INCOMESBASE YEARCAPITAL ACCUMULATIONCARIBBEAN REGIONCOMBINESCOMPETITIVENESSCONSUMER PREFERENCESCONSUMER PRICE INDEXCONSUMER PRICESCONSUMERSCONSUMPTION DATACONSUMPTION EXPENDITURECONSUMPTION INCREASESCONSUMPTION PER CAPITACOUNTRY-SPECIFIC CHARACTERISTICSDECOMPOSITION ANALYSISDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING REGIONSDEVELOPING WORLDDISTRIBUTIONAL CHANGESDISTRIBUTIONAL EFFECTDISTRIBUTIONAL EFFECTSDOMESTIC MARKETECONOMIC EXPANSIONECONOMIC GROWTHECONOMIC POLICYECONOMIC REVIEWECONOMIC THEORYEMPIRICAL ANALYSISEMPIRICAL RESULTSEMPLOYMENT IN AGRICULTUREEXCHANGE RATESEXOGENOUS CHANGESEXPORTEXPORT MARKETSEXPORT SUBSIDIESEXPORTSEXTREME POVERTYEXTREME POVERTY LINEEXTREMELY POOR HOUSEHOLDSFARMFARM COMMODITIESFARM HOUSEHOLDSFARM LABORFARM OUTPUTFARM PRODUCTSFARMERSFOOD CONSUMPTIONFOOD MARKETSFOOD PRICESFOOD PRODUCTSGDPGDP DEFLATORGENERAL EQUILIBRIUM MODELGEOGRAPHIC REGIONGINI COEFFICIENTGLOBAL ECONOMYGLOBAL MARKETSGLOBAL POVERTYGROWTH RATEHIGHER INEQUALITYHOUSEHOLD HEADHOUSEHOLD INCOMEHOUSEHOLD INCOMESHOUSEHOLD PER CAPITA INCOMEHOUSEHOLD SIZEHOUSEHOLD SURVEYSHOUSEHOLD WELFAREIMPORT BARRIERSIMPORT TARIFFINCIDENCE OF POVERTYINCOMEINCOME DATAINCOME DISPARITIESINCOME DISTRIBUTIONINCOME DISTRIBUTION DATAINCOME DISTRIBUTIONSINCOME GAINSINCOME INEQUALITYINCOME LEVELSINCOME REDISTRIBUTIONINCOME SHAREINCOME SOURCEINCREASED INEQUALITYINEQUALITY COEFFICIENTINEQUALITY DECOMPOSITIONINEQUALITY MEASUREINEQUALITY RESULTSINTERNATIONAL MARKETSINTERNATIONAL TRADELABOR MARKETLABOUR EARNINGSLDCSLOCAL FARMERSLOW INCOMEMACROECONOMIC MODELSMEAN INCOMESMEASUREMENT ERRORSMULTILATERAL TRADENATIONAL ECONOMIESNATIONAL INCOMENEGATIVE RELATIONSHIPNEGATIVE SHOCKPER CAPITA CONSUMPTIONPER CAPITA INCOMEPOLICY REFORMPOLICY REFORMSPOLICY RESEARCHPOOR GROWTHPOOR HOUSEHOLDSPOOR PEOPLEPOST-REFORMPOVERTY ALLEVIATIONPOVERTY CHANGESPOVERTY INCIDENCEPOVERTY LINEPOVERTY LINESPOVERTY OUTCOMESPOVERTY REDUCTIONPOWER PARITYPREFERENTIAL ACCESSPRICE CHANGESPRICE INCREASESPRICE INDICESPRIMARY EDUCATIONPRODUCER INCENTIVESPRODUCTION COSTSPROPORTIONAL IMPACTPUBLIC GOODSPURCHASING POWERRATE QUOTASREAL GDPREAL INCOMEREAL WAGEREAL WAGESREDISTRIBUTIVE EFFECTSREDUCTION IN POVERTYREGIONAL DIFFERENCESREGIONAL PATTERNREGIONAL PATTERNSREGIONAL TRADING AGREEMENTSREGRESSION ANALYSISRELATIVE PRICESRELATIVE WAGESRESOURCE ALLOCATIONSKILL LEVELSKILLED WORKERSSTRUCTURAL CHANGETARIFF RATETRADE AGREEMENTSTRADE BARRIERSTRADE DISPUTESTRADE LIBERALIZATIONTRADE NEGOTIATIONTRADE NEGOTIATIONSTRADE POLICIESTRADE POLICYTRANSITION ECONOMIESURUGUAY ROUNDUTILITY FUNCTIONVALUE ADDEDVOLUMEWAGE PREMIUMWAGESWEALTHWELFARE INDICATORWELFARE MEASUREWORLD TRADE ORGANIZATIONWTOWorking PaperWorld Bank10.1596/28154