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GTAP Resource #2391

"Free Trade Agreements, Poverty and Inequality in Central America"
by Rivera, Luis and Hugo Rojas-Romagosa


Abstract
We use a top-down macro-micro approach to estimate the effects on poverty and income inequality of two major trade agreements in Central America: DR-CAFTA and EU-CAAA. We first employ a macro CGE application to assess the main changes in factor and goods prices associated with each trade agreement; and then combine this information with household surveys for Costa Rica and Nicaragua. Headcount poverty is reduced in both countries, although DR-CAFTA provides the largest decreases. Inequality in Costa Rica remains unchanged with both agreements, although it increases slightly in Nicaragua under the EU-CAAA.


Resource Details (Export Citation) GTAP Keywords
Category: 2007 Conference Paper
Status: Published
By/In: Presented at the 10th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2007
Version: June 2007
Created: Rivera, L. (4/15/2007)
Updated: Rojas-Romagosa, H. (7/23/2007)
Visits: 2,104
- Preferential trading arrangements
- Economic analysis of poverty
- The GTAP Data Base and extensions
- Central America


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