Cockburn, JohnAnderson, KymMartin, Will2012-03-192012-03-192011-03-01https://hdl.handle.net/10986/3369Trade policy reforms in recent decades have sharply reduced the distortions that were harming agriculture in developing countries, yet global trade in farm products continues to be far more distorted than trade in nonfarm goods. Those distortions reduce some forms of poverty and inequality but worsen others, so the net effects are unclear without empirical modeling. This paper summarizes a series of new economy-wide global and national empirical studies that focus on the net effects of the remaining distortions to world merchandise trade on poverty and inequality globally and in various developing countries. The global LINKAGE model results suggest that removing those remaining distortions would reduce international inequality, largely by boosting net farm incomes and raising real wages for unskilled workers in developing countries, and would reduce the number of poor people worldwide by 3 percent. The analysis based on the Global Trade Analysis Project model for a sample of 15 countries, and nine stand-alone national case studies, all point to larger reductions in poverty, especially if only the non-poor are subjected to increased income taxation to compensate for the loss of trade tax revenue.CC BY 3.0 IGOADVERSE EFFECTAGRICULTURAL DEVELOPMENTAGRICULTURAL LANDAGRICULTURAL LIBERALIZATIONAGRICULTURAL POLICYAGRICULTURAL PRODUCTSAGRICULTURAL SECTORAGRICULTURAL TRADEAGRICULTUREAVERAGE INCOMEAVERAGE INCOMESBENCHMARKBENCHMARK DATABENEFITS OF TRADECAPITAL OWNERSCLIMATE CHANGECOMMERCIAL FARMERSCOMMODITYCOMMUNICATION TECHNOLOGYCONSTANT RETURNS TO SCALECONSUMER DEMANDCONSUMER PRICE INDEXCONSUMERSCOST OF CAPITALCOUNTRY CASECOUNTRY INEQUALITYCUSTOMSCUSTOMS REVENUEDEBTDEMAND CURVEDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ASSISTANCEDEVELOPMENT ECONOMICSDEVELOPMENT GOALSDEVELOPMENT POLICYDEVELOPMENT RESEARCHDISTRIBUTION OF INCOMEDIVIDENDECONOMETRIC ANALYSISECONOMETRICSECONOMIC GROWTHECONOMIC IMPLICATIONSECONOMIC INTEGRATIONECONOMIC POLICYECONOMIC SIZEECONOMIES OF SCALEELASTICITYELASTICITY OF SUBSTITUTIONEMERGING ECONOMIESEMPIRICAL EVIDENCEEMPIRICAL STUDIESEXPORT DEMANDEXPORT PRICESEXPORT TAXESEXPORTSEXTERNAL TRADEEXTREME POVERTYEXTREMELY POOR PEOPLEFACTOR PRICESFARM HOUSEHOLDSFARM INCOMEFARM INCOMESFARM PRODUCTSFARM WORKFARM WORKERSFARMERSFINANCIAL CRISISFINANCIAL INTEGRATIONFOOD MARKETSFOOD PRICEFOOD PRICESFOREIGN CURRENCYFOREIGN DEBTFREE ACCESSGDPGDP PER CAPITAGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM ANALYSISGINI COEFFICIENTGLOBAL ECONOMIC PROSPECTSGLOBAL ECONOMYGLOBAL MARKETSGLOBAL POVERTYGLOBAL TRADEGLOBALIZATIONGOVERNMENT BUDGETSHOUSEHOLD CONSUMPTIONHOUSEHOLD INCOMEHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHOUSEHOLD WELFAREIMPORT BARRIERSIMPORT COMPETITIONIMPORT RESTRICTIONSIMPORT TARIFFSIMPORTSINCIDENCE OF POVERTYINCOMEINCOME DISTRIBUTIONINCOME DYNAMICSINCOME GAINSINCOME INEQUALITYINCOME TAXINCOME TAXESINCOME-GENERATING ACTIVITIESINCREASE GROWTHINCREASE POVERTYINDIVIDUAL COUNTRIESINEQUALITYINEQUALITY RESULTSINFRASTRUCTURE INVESTMENTSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL FLOWSINTERNATIONAL TRADELABOR MARKETLOW-INCOME COUNTRIESMACROECONOMIC POLICIESMARKET ACCESSMONOPOLISTIC COMPETITIONMULTILATERAL AGREEMENTSMULTILATERAL TRADEMULTILATERAL TRADE AGREEMENTSMULTILATERAL TRADE NEGOTIATIONSMULTILATERAL TRADE REFORMNATIONAL ECONOMIESNATIONAL MODELSNATIONAL POVERTYNON-POOR HOUSEHOLDSNONFARM INCOMEPARTIAL EQUILIBRIUM ANALYSISPARTICULAR COUNTRIESPARTICULAR COUNTRYPOLICY CHANGESPOLICY IMPLICATIONSPOLICY MEASURESPOLICY RESEARCHPOLITICAL ECONOMYPOLITICAL ECONOMY ANALYSISPOORPOOR HOUSEHOLDSPOOR PEOPLEPOVERTY ALLEVIATIONPOVERTY ANALYSISPOVERTY CHANGESPOVERTY HEADCOUNT INDEXPOVERTY IMPACTPOVERTY INCREASESPOVERTY LINEPOVERTY LINESPOVERTY RATEPOVERTY RATESPOVERTY REDUCINGPOVERTY REDUCTIONPRICE DISTORTIONPRICE DISTORTIONSPRICE INCREASESPRO-POORPRODUCT MARKETSPROTECTIONISTRAPID GROWTHRATE OF RETURNREAL GDPREAL INCOMEREDUCING POVERTYRELATIVE IMPORTANCERURALRURAL AREASRURAL BASERURAL DEVELOPMENTRURAL HOUSEHOLDSRURAL HUMAN CAPITALRURAL INCOMERURAL INEQUALITYRURAL POORRURAL POVERTYRURAL TOWNSSKILLED WORKERSSOCIAL PROGRAMSSOCIAL WELFARESUBSISTENCE FARMERSTARIFF PROTECTIONTARIFF REVENUETAX POLICYTAX REVENUETAX REVENUESTAXATIONTERMS OF TRADETRADE BARRIERSTRADE DISTORTIONSTRADE IN SERVICESTRADE LIBERALIZATIONTRADE NEGOTIATIONSTRADE POLICIESTRADE POLICYTRADE POLICY REFORMTRADE POLICY REFORMSTRADE REFORMSTRADE TAXTRADE TAXESTRADE-DISTORTING POLICIESTREASURYUNEMPLOYMENTUNSKILLED LABORURBAN AREASURBAN POORURBAN POVERTYURBANIZATIONVALUE ADDEDVOLATILITYWAGESWEALTHWORLD ECONOMYWORLD MARKETSWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-5603