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GTAP Resource #1942

"Globalisation and Poverty Changes in Colombia"
by Lay, Jann and Maurizio Bussolo

This chapter uses a macro-micro modeling framework to analyze the important income distribution and poverty changes occurred in Colombia with the substantial trade liberalization of the 90’s. A major policy conclusion is that trade liberalization can substantially contribute to improve the poverty situation. Abstracting from simultaneous additional shocks and labor supply growth, the beginning of the 90s tariff abatement seems to have accounted for a very large share of the total reduction in poverty recorded from 1988 to 1995. This holds in particular for rural areas. Furthermore distributional impacts differ fundamentally between rural and urban areas, and the methodology highlights that aggregate net results, such as the change in the poverty ratio (headcount), conceal important flows in and out of poverty. This framework allows us to capture important channels through which macro shocks affect household incomes and possibly to help in designing corrective pro-poor policies.

Resource Details (Export Citation) GTAP Keywords
Category: 2006 Conference Paper
Status: Published
By/In: Presented at the 9th Annual Conference on Global Economic Analysis, Addis Ababa, Ethiopia
Date: 2005
Created: Lay, J. (4/10/2006)
Updated: Lay, J. (4/10/2006)
Visits: 2,841
No keywords have been specified.

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