De Hoyos, RafaelBussolo, MaurizioMedvedev, Denis2012-03-192012-03-192009-03-01https://hdl.handle.net/10986/4045This paper assesses the potential impacts of the removal of agriculture 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 and food could increase global extreme poverty (US$1 a day) by 0.2 percent and lower moderate poverty (US$2 a day) by 0.3 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-experiences an increase in extreme poverty incidence due to high rates of protection afforded to unskilled-intensive agricultural sectors. The distributional changes are likely to be mild, but exhibit a strong regional pattern. Inequality is likely to fall in regions such as Latin America, which are characterized by high initial inequality, and rise in regions like South Asia, characterized by low initial inequality.CC BY 3.0 IGOAGRICULTURAL ACTIVITIESAGRICULTURAL INCOMESAGRICULTURAL LIBERALIZATIONAGRICULTURAL POPULATIONAGRICULTURAL PRICESAGRICULTURAL PRICINGAGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTSAGRICULTURAL SECTORAGRICULTURAL SECTORSAGRICULTURAL TRADEAGRICULTURAL WAGEAGRICULTUREAVERAGE HOUSEHOLD INCOMEAVERAGE INCOMEAVERAGE INCOMESBASE YEARCAPITAL ACCUMULATIONCOMPETITIVENESSCONSUMER PREFERENCESCONSUMER PRICESCONSUMERSCONSUMPTIONCONSUMPTION DATACONSUMPTION EXPENDITURECONSUMPTION INCREASESCONSUMPTION PER CAPITACOUNTRY-SPECIFIC CHARACTERISTICSDECOMPOSITION ANALYSISDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING REGIONSDEVELOPING WORLDDEVELOPMENTDEVELOPMENT ECONOMICSDISTRIBUTIONDISTRIBUTIONAL CHANGESDISTRIBUTIONAL EFFECTDISTRIBUTIONAL EFFECTSDOLLAR POVERTY INCIDENCEECONOMIC EXPANSIONECONOMIC GROWTHECONOMIC OPPORTUNITIESECONOMIC POLICIESECONOMIC POLICYECONOMIC THEORYECONOMIC TRENDSEMPIRICAL ANALYSISEMPIRICAL APPLICATIONEMPIRICAL LITERATUREEMPLOYMENT IN AGRICULTUREEXCHANGE RATEEXCHANGE RATESEXOGENOUS CHANGESEXPORT MARKETSEXPORT SUBSIDIESEXPORT TAXESEXPORTSEXTREME POVERTYEXTREME POVERTY LINEFACTOR PRICESFARM HOUSEHOLDSFARM LABORFARMERSFOOD CONSUMPTIONFOOD MARKETSFOOD PRICESFOOD PRODUCTSGDPGDP DEFLATORGINI COEFFICIENTGINI INDEXGLOBAL ECONOMYGLOBAL LEVELGLOBAL POPULATIONGLOBAL POVERTYGLOBAL VIEWGOODSGROUP INEQUALITYGROWTH RATEGROWTH RATESHEAD COUNT RATIOHIGH INCOME COUNTRIESHIGHER INEQUALITYHOUSEHOLD HEADHOUSEHOLD INCOMEHOUSEHOLD INCOMESHOUSEHOLD LEVELHOUSEHOLD PER CAPITA INCOMEHOUSEHOLD SIZEHOUSEHOLD SURVEYSHOUSEHOLD WELFAREIMPORT TARIFFSINCENTIVESINCIDENCE OF POVERTYINCOMEINCOME DATAINCOME DISPARITIESINCOME DISTRIBUTIONINCOME DISTRIBUTION DATAINCOME DISTRIBUTIONSINCOME GAINSINCOME INEQUALITYINCOME LEVELSINCOME REDISTRIBUTIONINCOME SHARESINCOME SOURCEINCOMES CHANGEINCOMES INCREASEINCREASED INEQUALITYINEQUALITY CHANGESINEQUALITY DECOMPOSITIONINEQUALITY MEASUREINEQUALITY OUTCOMESINTERNATIONAL TRADELABOR MARKETLEVEL OF DEVELOPMENTLOW-INCOME COUNTRIESMACROECONOMIC OUTCOMESMEAN INCOMESMEASUREMENTMEASUREMENT ERRORSMICRO DATAMICRO MODELMIDDLE INCOME COUNTRIESMILLENNIUM DEVELOPMENT GOALSMINORITYMULTILATERAL NEGOTIATIONSMULTILATERAL TRADENATIONAL INCOMENATIONALSNEGATIVE RELATIONSHIPOUTCOMESPAYMENTSPER CAPITA CONSUMPTIONPER CAPITA INCOMEPER-CAPITA INCOMEPOLICIESPOLICY INTERVENTIONSPOLICY MESSAGESPOLICY REFORMPOLICY REFORMSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL ECONOMYPOOR GROWTHPOOR HOUSEHOLDSPOOR PEOPLEPOPULATIONPOPULATION GROUPPOPULATION SIZEPOPULATION SUBGROUPSPOPULATIONSPOPULOUS COUNTRYPOST-REFORMPOVERTY CHANGESPOVERTY COMPARISONSPOVERTY ERADICATIONPOVERTY INCIDENCEPOVERTY LINEPOVERTY LINESPOVERTY OUTCOMESPOVERTY REDUCTIONPRICE INCREASESPRICESPRIMARY EDUCATIONPRIMARY SCHOOLPRO-POORPRO-POOR GROWTHPRODUCTPRODUCTION COSTSPROGRESSPUBLIC GOODSPURCHASING POWERPURCHASING POWER PARITYREAL GDPREAL INCOMEREAL INCOMESREAL WAGEREAL WAGESREDISTRIBUTIVE EFFECTSREDUCTION IN POVERTYREGIONAL DIFFERENCESREGIONAL GROWTHREGIONAL LEVELREGRESSION ANALYSISRELATIVE WAGESRESPECTSECTORAL COMPOSITIONSKILL LEVELSKILLED WORKERSSTRUCTURAL CHANGETAXESTRADETRADE BARRIERSTRADE LIBERALIZATIONTRADE NEGOTIATIONSTRADE POLICYUNEQUAL COUNTRIESUNSKILLED LABORURBAN BIASURUGUAY ROUNDUSE PER CAPITAUTILITYUTILITY FUNCTIONVALUEVALUE ADDEDVARIABLESVIRGINWAGESWELFAREWELFARE INDICATORWELFARE MEASUREWOMANWORLD POPULATIONWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-4849