Abstract
The paper surveys selectively and analytically the implications of the various
(macroeconomic) computable general equilibrium (CGE) models constructed for the
purpose of integrating poverty analysis with the usual macroeconomic variables and
relationships. It is found that a dual-dual production structure with sufficient details on the
labor markets and household side can capture some of the effects of trade liberalization
on poverty reduction. Further work needs to be done in expanding the export sectors
and adding financial structure in order to carry out a detailed analysis of the impact of
both trade and financial liberalization on poverty reduction. To this end a preliminary
model is presented which can be compactified to carry out this type of analysis. Four
broad categories of Asian economies are suggested for further analysis. As a first step in
this direction, a modified model based on data about the structure of Bangladesh
economy can be used as a "generic" model for the least developed poor Asian
economies.
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The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
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