Poverty Impacts of Trade Liberalization in a Dual-Dual CGE Model: Illustrations for South Asia

Macroeconomic models can be used to isolate the impact of a policy on poverty. This paper uses data from a typical South Asian economy to assess the poverty consequences of trade reform in terms of reduction in import tariffs. It concludes that most of the poverty effects of reform are exhausted once tariffs reach an average of 15 to 20 per cent.

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