The Distributional Impacts of Trade : Empirical Innovations, Analytical Tools, and Policy Responses / Jakob Engel.

Format:

Book

Government document

Author/Creator:

Engel, Jakob.

Contributor:

Kokas, Deeksha.

Lopez-Acevedo, Gladys.

Maliszewska, Maryla.

Series:

World Bank e-Library.

Trade and Development

Language:

English

Subjects (All):

Adjustment Costs To Trade.

Distributional Effects of Trade.

Gender.

Labor.

Policies To Share Gains From Trade.

Poverty.

Local Subjects:

Adjustment Costs To Trade.

Distributional Effects of Trade.

Gender.

Labor.

Policies To Share Gains From Trade.

Poverty.

Physical Description:

1 online resource (128 pages)

Edition:

1st ed.

Other Title:

Distributional Impacts of Trade

Place of Publication:

Washington, D.C. : The World Bank, 2021.

System Details:

data file

Summary:

Trade is a well-established driver of growth and poverty reduction.But changes in trade policy also have distributional impacts that create winners and losers. It is vital to understand and clearly communicate how trade affects economic well-being across all segments of the population, as well as how policies can more effectively ensure that the gains from trade are distributed more widely. The Distributional Impacts of Trade: Empirical Innovations, Analytical Tools, and Policy Responses provides a deeper understanding of the distributional effects of trade across regions, industries, and demographic groups within countries over time. It includes an overview (chapter 1); a review of innovations in empirical and theoretical work covering the impacts of trade at the subnational level (chapter 2); highlights from empirical case studies on Bangladesh, Brazil, Mexico, South Africa, and Sri Lanka (chapter 3); and a policy agenda to improve distributional outcomes from trade (chapter 4). This book comes at a time when the shock from COVID-19 (coronavirus) adds to an already uncertain trade policy environment in which the value of the multilateral trading system has been under increased scrutiny. A better understanding of how trade affects distributional outcomes can lead to more inclusive policies and support the ability of countries to maximize broad-based benefits from trade.

Contents:

Front cover

Contents

Foreword

Acknowledgments

About the Authors

Abbreviations

Executive Summary

1. Setting the Scene

Key Messages

Introduction

Why Distributional Issues Matter

Value Added and Road Map

Notes

References

2. Lessons from the Literature on Distributional Impacts

A Framework for Understanding the Distributional Impacts of Trade

Impacts on Labor Market Outcomes

Local Labor Markets in Developing Countries

Understanding Hefty Adjustment Costs

Impacts on Consumer Prices and Cost of Living

Imperfect Pass-Through of Tariff Prices to Consumers

Conclusion

3. Lessons from Recent Cases of Trade Reforms in Developing Countries

Mexico: How Rising Exports Affect Local Poverty and Inequality

Bangladesh: How a Shock in Textiles and Apparel Spreads through Local Communities and across the Economy

South Africa: How Apartheid's Legacy Shapes the Impact of Trade Liberalization on Local Communities

Brazil: How Trade Shocks Affect Wages and Job Opportunities across Regions and Industries

Sri Lanka: How Liberalizing Trade Affects Local Employment

Annex 3A: Overview of Gender Disaggregated Labor Databas

Note

4. Fostering Inclusive Trade: A Policy Agenda

Complementary Policy Priorities for Inclusive Trade

Implementing a Policy Agenda for Inclusive Trade

Appendix A. Methodological Approaches Applied in the Case Studies

Boxes

Box 1.1 The Spread of COVID-19 (Coronavirus) Poses a Significant Challenge to Global Integration

Box 2.1 Extensions of "The China Syndrome"

Box 2.2 Understanding Winners and Losers with the Household Impacts of Tariffs Database.

Box 2.3 Informal Labor Markets and Trade

Box 2.4 New Approaches to Measure Consumption Impacts

Box 3.1 Data Needed to Estimate Labor Market Effects of Trade Reforms at the Subnational Level

Box 4.1 Active Labor Market Policies and Programs in Developing Countries and Their Impacts

Box 4.2 Providing a Solid Base for the African Continental Free Trade Area to Flourish

Figures

Figure 1.1 As Tariffs Dropped in Developing Countries, the Role of Trade Increased

Figure 1.2 Global Extreme Poverty Declined Sharply from 1990 to 2017

Figure 1.3 Restrictions on Trade, Investment, and Migration Have Increased in Recent Years

Figure 1.4 Structure of This Report

Figure 2.1 Big Drops in Formal Employment Occur after Tariff Cuts

Figure 2.2 Tradable Sectors Are Hardest Hit Even Decades Later

Figure 3.1 Municipalities with Higher Exports Have Less Poverty, Have Higher Incomes, and Are More Unequal

Figure 3.2 Textiles and Apparel Dominate in Bangladesh

Figure 3.3 Higher Exports Go Hand in Hand with Higher Wages

Figure 3.4 Higher Exports Go Hand in Hand with Lower Informality

Figure 3.5 Manufacturing Saw a Prominent Drop in Tariff Rates

Figure 3.6 A Worker's Industry Matters for Wage Gains

Figure 3.7 Manufacturing Sees Biggest Increase in Jobs Compared with Other Sectors

Figure 3.8 A Permanent Increase in Formal Employment

Figure 3.9 Workers Switch from Agriculture to Textiles and Apparel

Map

Map 3.1 Sri Lanka's Western Urban Areas See the Highest Job Gains

Tables

Table ES.1 Case Studies Show Different Political and Economic Dynamics in Trade Reforms

Table 3.1 Assessment of Trade Policy Changes on Sri Lankan Welfare

Table 3A.1 Subnational Statistics in Gender Disaggregated Labor Database.

Table A.1 Methodological Approaches Applied in the Case Studies.

Notes:

Description based on print version record.

ISBN:

9781464817052

1464817057

OCLC:

1258031628

Publisher Number:

10.1596/978-1-4648-1704-5