Trade Reforms, Farm Productivity, and Poverty in Bangladesh
Trade Reforms, Farm Productivity, and Poverty in Bangladesh

Author: Irina Klytchnikova

Publisher: World Bank Publications

Published: 2006

Total Pages: 33

ISBN-13:

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"This paper analyzes the distributional impacts of trade reforms in rural areas of Bangladesh. The liberalization of trade in irrigation equipment and fertilizer markets during the early 1990s has led to structural changes in the agricultural sector and a significant increase in rice productivity. A resulting increase in output has been associated with a decline in producer and consumer rice prices of approximately 25 percent. Using a combination of ex-post and ex-ante approaches, the authors investigate the implications of the changes in rice productivity and prices for the welfare of households. They find that the net effects of increased rice productivity and lower rice prices have benefited the poor. Regardless of the particular category analyzed, the poorest households emerged as being particularly positively affected by reforms in the 1990s. This mainly reflects the fact that they are predominantly net rice buyers in both urban and rural markets. In contrast, large net sellers of rice, among the better-off households in the rural areas, were the main losers. Since net buyers in rural areas tend to be poorer than net sellers, trade liberalization has benefited the poor. Although the authors are not able to test empirically what has happened to the welfare level of agricultural wage earners, secondary evidence suggests that they have gained from trade liberalization."--World Bank web site.

Trade Reforms, Farm Productivity, and Poverty in Bangladesh
Trade Reforms, Farm Productivity, and Poverty in Bangladesh

Author: Irina Klytchnikova

Publisher:

Published: 2016

Total Pages: 33

ISBN-13:

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This paper analyzes the distributional impacts of trade reforms in rural areas of Bangladesh. The liberalization of trade in irrigation equipment and fertilizer markets during the early 1990s has led to structural changes in the agricultural sector and a significant increase in rice productivity. A resulting increase in output has been associated with a decline in producer and consumer rice prices of approximately 25 percent. Using a combination of ex-post and ex-ante approaches, the authors investigate the implications of the changes in rice productivity and prices for the welfare of households. They find that the net effects of increased rice productivity and lower rice prices have benefited the poor. Regardless of the particular category analyzed, the poorest households emerged as being particularly positively affected by reforms in the 1990s. This mainly reflects the fact that they are predominantly net rice buyers in both urban and rural markets. In contrast, large net sellers of rice, among the better-off households in the rural areas, were the main losers. Since net buyers in rural areas tend to be poorer than net sellers, trade liberalization has benefited the poor. Although the authors are not able to test empirically what has happened to the welfare level of agricultural wage earners, secondary evidence suggests that they have gained from trade liberalization.

Implications of WTO Agreements and Unilateral Trade Policy Reforms for Poverty in Bangladesh
Implications of WTO Agreements and Unilateral Trade Policy Reforms for Poverty in Bangladesh

Author:

Publisher: World Bank Publications

Published: 2006

Total Pages: 44

ISBN-13:

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"The authors examine the effects of WTO agreements and domestic trade policy reforms on production, welfare, and poverty in Bangladesh. They use a sequential dynamic computable general equilibrium (CGE) model, which takes into account accumulation effects, allowing for long-run analysis. The study is based on the 2000 Social Accounting Matrix (SAM) of Bangladesh including 15 production sectors, four factors of production (skilled and unskilled labor, agricultural and nonagricultural capital), and nine household groups (five in rural areas and four in urban areas). To examine the link between the macroeconomic effects and microeconomic effects in terms of poverty, the authors use the representative household approach with actual intra-group income distributions. The study presents five simulations for which the major findings are: - The Doha scenario has negative implications for the overall macroeconomy, household welfare, and poverty in Bangladesh. Terms of trade deteriorate and consumer prices, particularly food prices, increase more than nominal incomes, especially among poor households. - Free world trade has similar, but larger, impacts. - Domestic trade liberalization induces an expansion of agricultural and light manufacturing sectors, favorable changes in the domestic terms of trade. Although the short-run welfare and poverty impacts are negative, these turn positive in the long run when capital has adjusted through new investments. Rising unskilled wage rates make the poorest households the biggest winners in terms of welfare and poverty reduction. - Domestic liberalization effects far outweigh those of free world trade when these scenarios are combined. - Remittances constitute a powerful poverty-reducing tool given their greater importance in the income of the poor." -- Cover verso.

The Role of Trade in Ending Poverty
The Role of Trade in Ending Poverty

Author:

Publisher:

Published: 2015

Total Pages: 0

ISBN-13: 9789287042323

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The Role of Trade in Ending Poverty looks at the complex relationships between economic growth, poverty reduction and trade, and examines the challenges that poor people face in benefiting from trade opportunities. Written jointly by the World Bank Group and the WTO, the publication examines how trade could make a greater contribution to ending poverty by increasing efforts to lower trade costs, improve the enabling environment, implement trade policy in conjunction with other areas of policy, better manage risks faced by the poor, and improve data used for policy-making.

Implications of WTO Agreements and Unilateral Trade Policy Reforms for Poverty in Bangladesh
Implications of WTO Agreements and Unilateral Trade Policy Reforms for Poverty in Bangladesh

Author: Nabil Annabi

Publisher:

Published: 2016

Total Pages: 44

ISBN-13:

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The authors examine the effects of WTO agreements and domestic trade policy reforms on production, welfare, and poverty in Bangladesh. They use a sequential dynamic computable general equilibrium (CGE) model, which takes into account accumulation effects, allowing for long-run analysis. The study is based on the 2000 Social Accounting Matrix (SAM) of Bangladesh including 15 production sectors, four factors of production (skilled and unskilled labor, agricultural and nonagricultural capital), and nine household groups (five in rural areas and four in urban areas). To examine the link between the macroeconomic effects and microeconomic effects in terms of poverty, the authors use the representative household approach with actual intra-group income distributions. The study presents five simulations for which the major findings are: (1) The Doha scenario has negative implications for the overall macroeconomy, household welfare, and poverty in Bangladesh. Terms of trade deteriorate and consumer prices, particularly food prices, increase more than nominal incomes, especially among poor households. (2) Free world trade has similar, but larger, impacts. (3) Domestic trade liberalization induces an expansion of agricultural and light manufacturing sectors, favorable changes in the domestic terms of trade. Although the short-run welfare and poverty impacts are negative, these turn positive in the long run when capital has adjusted through new investments. Rising unskilled wage rates make the poorest households the biggest winners in terms of welfare and poverty reduction. (4) Domestic liberalization effects far outweigh those of free world trade when these scenarios are combined. (5) Remittances constitute a powerful poverty-reducing tool given their greater importance in the income of the poor.

Implications of WTO Agreements and Unilateral Trade Policy Reforms for Poverty in Bangladesh
Implications of WTO Agreements and Unilateral Trade Policy Reforms for Poverty in Bangladesh

Author: Nabil Annabi

Publisher:

Published: 2012

Total Pages:

ISBN-13:

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The authors examine the effects of WTO agreements and domestic trade policy reforms on production, welfare, and poverty in Bangladesh. They use a sequential dynamic computable general equilibrium (CGE) model, which takes into account accumulation effects, allowing for long-run analysis. The study is based on the 2000 Social Accounting Matrix (SAM) of Bangladesh including 15 production sectors, four factors of production (skilled and unskilled labor, agricultural and nonagricultural capital), and nine household groups (five in rural areas and four in urban areas). To examine the link between the macroeconomic effects and microeconomic effects in terms of poverty, the authors use the representative household approach with actual intra-group income distributions. The study presents five simulations for which the major findings are: (1) The Doha scenario has negative implications for the overall macroeconomy, household welfare, and poverty in Bangladesh. Terms of trade deteriorate and consumer prices, particularly food prices, increase more than nominal incomes, especially among poor households. (2) Free world trade has similar, but larger, impacts. (3) Domestic trade liberalization induces an expansion of agricultural and light manufacturing sectors, favorable changes in the domestic terms of trade. Although the short-run welfare and poverty impacts are negative, these turn positive in the long run when capital has adjusted through new investments. Rising unskilled wage rates make the poorest households the biggest winners in terms of welfare and poverty reduction. (4) Domestic liberalization effects far outweigh those of free world trade when these scenarios are combined. (5) Remittances constitute a powerful poverty-reducing tool given their greater importance in the income of the poor.

Dynamics of Rural Growth in Bangladesh
Dynamics of Rural Growth in Bangladesh

Author: Madhur Gautam

Publisher: World Bank Publications

Published: 2016-06-28

Total Pages: 292

ISBN-13: 146480883X

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The rural economy in Bangladesh has powerfully advanced economic growth and substantially reduced poverty, especially since 2000, but the remarkable transformation and unprecedented dynamism in rural Bangladesh remain an underexplored, underappreciated, and largely untold story. Dynamics of Rural Growth in Bangladesh: Sustaining Poverty Reduction tells that story and inquires what specific actions Bangladesh might take—given the residual poverty and persistent malnutrition—to accelerate and channel its rural dynamism to sustain the gains in eliminating poverty, achieving shared prosperity, and advancing national aspirations to achieve middle-income status. The central element of this study, undertaken with the Government of Bangladesh Planning Commission to address key questions elicited through extensive consultation, is an empirical analysis that illuminates the underlying dynamics of rural growth, particularly the role of agriculture and its relationship to the nonfarm economy. Using all sources of data available for the macro-, meso-, and microhousehold levels, the analysis provides new evidence on changes in the rural economy and the principal drivers of rural incomes. It also examines market performance for high-value agricultural products and agriculture†“nutrition linkages, based on new surveys and analysis. The resulting evidence, examined in light of the rich knowledge of rural development in Bangladesh, is used to delineate the implications for policy and the strategic priorities for sustaining future rural development, poverty reduction, food security, and nutrition. The effects of policy reforms, changes in technology, and investments in infrastructure and human capital described here, along with the persistent enterprise of rural Bangladeshi households, offer a compelling case study of how mutually reinforcing actions can trigger the highly-sought-after virtuous cycle of rural development. The findings clearly demonstrate the pro-poor nature of agricultural growth and its catalytic role in stimulating the rural nonfarm economy. They show that households have no linear or predictable pathway out of poverty; instead, they wisely employ a combination of farm and nonfarm income strategies to climb out of, and then stay out of, poverty. The results represent a strong contribution to the global thinking on rural transformation and on how agriculture in particular sustains the economic momentum that fosters poverty reduction and more widespread prosperity.

Economic Reforms and Food Security
Economic Reforms and Food Security

Author: Suresh Babu

Publisher: CRC Press

Published: 2005-03-08

Total Pages: 512

ISBN-13: 9781560222576

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Gain new insight on alleviating food insecurity in one of the poorest areas of the world! This book analyzes various facets of economic reforms in South Asia and their implications for attaining food security. It illuminates relevant issues regarding the constraints and challenges in achieving food security, focusing on South Asian countries where a large percentage of the world’s poor reside. This timely resource examines possible future courses of action involving trade and new technological advances to improve agriculture-led development in the region. Economic Reforms and Food Security: The Impact of Trade and Technology in South Asia focuses its attention on the economic reforms and experiences of six nations: Bangladesh Bhutan India Nepal Pakistan Sri Lanka Economic Reforms and Food Security: The Impact of Trade and Technology in South Asia includes the most relevant presentations made at the South Asia Regional Conference held in New Delhi in April of 2002. The book features experts who present lively, important debate on such significant issues as: current economic reforms—have they really enhanced food security? trade liberalization—can the WTO and new trade opportunities handle food security concerns? new technological options—how they contribute to agricultural production and food security the challenges of water—pricing, subsidies, and other issues in irrigation agricultural diversification and market reforms-how they increase food availability interventions in food and nutrition security—short-term solutions to reduce food insecurity and more! Economic Reforms and Food Security: The Impact of Trade and Technology in South Asia contains numerous tables and figures to demonstrate the current food situation in this area of the world and offers projections of where improvements can be made. Students and faculty of economics or South Asia will find this book extremely useful; it will also benefit development researchers, policymakers, and governmental officials who are searching for answers to poverty and starvation in developing countries. This text shows you how a concerted effort by governments, agencies, organizations, industries, and individuals—backed by adequate resources and changes in policies—can accelerate progress toward achieving sustainable food security for all.

Trade Reforms, Poverty and Inequality in Bangladesh
Trade Reforms, Poverty and Inequality in Bangladesh

Author: Bodrun Nahar

Publisher: Nova Science Pub Incorporated

Published: 2014-01-01

Total Pages: 260

ISBN-13: 9781631175053

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Trade liberalisation reforms in Bangladesh have been accompanied by impressive economic growth and substantial reductions in poverty. Nevertheless, there is concern that increasing inequality has limited the poverty-reducing impact of economic growth. Against this backdrop, the present study uses a multi-sectoral, multi-factor and multi-household computable general equilibrium (CGE) model to simulate the short-run and long-run effects of the unilateral elimination of import tariffs on poverty and inequality in Bangladesh. In doing so, the study also explores the effects on macroeconomic performance, on output and employment in individual industries, on employment by gender and skill groups, and on household income and consumption of various socio-economic groups. Recognising the perceived risk that the loss of tariff revenue might lead to unsustainably large fiscal deficits, the study simulates the effects of the removal of tariffs, both with and without an endogenously determined consumption tax to compensate for the loss of tariff revenue. In the long run, in both rural and urban areas, the removal of tariffs without a compensatory consumption tax brings significant reductions in poverty accompanied by declines in inequality. With the introduction of a consumption tax, poverty and inequality still fall in the long run, but in each case to a smaller extent. This book provides a significant contribution to understanding of the trade-poverty-inequality nexus in Bangladesh. Its comprehensive, in-depth, yet accessible analysis should arouse the interest of a wide-ranging readership that includes trade negotiators, policy makers, academics, researchers, students and all who are interested in issues at the heart of the globalisation debate.