Gainers and Losers from Trade Reform in Morocco

The authors use Morocco's national survey of living standards to measure the short-term welfare impacts of prior estimates of the price changes attributed to various trade policy reforms for cereals-the country's main food staple. They find small impacts on mean consumption and inequality in the aggregate. There are both gainers and losers and (contrary to past claims) the rural poor are worse off on average after trade policy reforms. The authors decompose the aggregate impact on inequality into a "vertical" component (between people at different pre-reform welfare levels) and a "horizontal" component (between people at the same pre-reform welfare level). There is a large horizontal component which dominates the vertical impact of full de-protection. The diverse impacts reflect a degree of observable heterogeneity in consumption behavior and income sources, with implications for social protection policies.

Bibliographic Details

Main Authors:	Ravallion, Martin, Lokshin, Michael
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, D.C. 2004-08
Subjects:	ADVERSE IMPACTS, AGGREGATE DEMAND, AGRICULTURAL SECTOR, AGRICULTURE, BENEFIT INCIDENCE, CONSUMERS, CONSUMPTION AGGREGATE, CONSUMPTION DISTRIBUTION, CONSUMPTION PATTERNS, CPI, CROSS-COUNTRY COMPARISONS, CROSS-SECTIONAL DATA, CUMULATIVE DISTRIBUTION, CUMULATIVE DISTRIBUTION FUNCTION, DATA SET, DEMOGRAPHIC COMPOSITION, DEMOGRAPHICS, DEVELOPING COUNTRIES, DEVELOPMENT ISSUES, DEVELOPMENT RESEARCH, DISTRIBUTIONAL IMPACT, ECONOMIC CHARACTERISTICS, EMPIRICAL EXAMPLES, EMPLOYMENT, ENVELOPE PROPERTY, ENVIRONMENTAL IMPACTS, EQUILIBRIUM, EQUILIBRIUM ANALYSES, GENERAL EQUILIBRIUM ANALYSIS, HORIZONTAL EQUITY, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD CONSUMPTION, HOUSEHOLD HEAD, HOUSEHOLD LEVEL, HOUSEHOLD SIZE, HOUSEHOLD SURVEY, HOUSEHOLD WELFARE, IMPORTS, INCOME, INCOME GROUPS, INCOME SOURCES, INCOMES, INEQUALITY, INEQUALITY MEASURE, INEQUALITY MEASURES, INPUT PRICES, LABOR MARKET, LIVING INDEX, LIVING STANDARDS, LIVING STANDARDS MEASUREMENT, LIVING STANDARDS MEASUREMENT STUDY, LIVING STANDARDS SURVEY, MARGINAL UTILITY, MEAN CONSUMPTION, MEAN LOG DEVIATION, MEASUREMENT ERROR, MEASURING WELFARE, NATIONAL POVERTY, NEGLIGIBLE DIFFERENCE, OFFICIAL POVERTY, POLICY CHANGE, POLICY REFORM, POLICY RESEARCH, POLICY RESPONSE, POSITIVE EFFECTS, POSITIVE IMPACT, POVERTY INCIDENCE, POVERTY LINE, POVERTY LINES, POVERTY MEASURE, POVERTY RATE, PRICE CHANGES, PRICE VECTOR, PRICES CHANGE, PRODUCERS, PRODUCTIVITY, PROFIT FUNCTIONS, PROPORTIONATE CHANGES, PROTECTION POLICIES, REAL WAGE, REAL WAGE RATES, REAL WAGES, REGIONAL DIFFERENCES, REGRESSION FUNCTION, RELATIVE IMPORTANCE, RELATIVE PRICE, RURAL AREAS, RURAL ECONOMY, RURAL HOUSEHOLDS, RURAL POOR, RURAL POPULATION, RURAL POVERTY, SAVINGS, SOCIAL PROTECTION, SOCIAL WELFARE, STATISTICS OFFICE, TAX REFORM, TAXATION, TIME SERIES, TRADE LIBERALIZATION, TRADE REFORMS, URBAN AREA, URBAN AREAS, URBAN CONSUMERS, URBAN HOUSEHOLDS, URBAN POVERTY, URBAN SECTOR, UTILITY FUNCTION, WAGE RATES, WAGES, WATER RESOURCES, WELFARE EFFECTS, WELFARE LEVELS, WELFARE MEASURE TRADE REFORM, TRADE POLICIES, FOOD STAPLES, FOOD POLICIES, CEREALS, CONSUMPTION ECONOMICS, SOCIAL POLICIES, WELFARE,
Online Access:	http://documents.worldbank.org/curated/en/2004/08/5062169/gainers-losers-trade-reform-morocco http://hdl.handle.net/10986/14167
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