Gainers and losers from trade reform in Morocco
World Bank, Development Research Group, Poverty Team, 2004 - Business & Economics - 41 pages
"Ravallion and Lokshin 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 foodstaple. 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. This paper -a product of the Poverty Team, Development Research Group - is part of a larger effort in the group to assess the distributional impact of economywide policy reforms"--Abstract.
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Absolute gain aggregate amongst the poor analysis binary capita consumption percentiles capita gain Chaouia-Ouardigha complete de-protection consumers consumption and production Consumption per capita consumption per person covariates de-protection of cereals decomposition Dirham distributional impacts Doukala Abda Doukkali dummy variable Edible oils Fes-Boulemane Fresh and processed Fresh vegetables G.Casablanca Gharb-Chrarda-Beni Hssen Gini index given pre-reform Guelmime Es-Semara horizontal component household level impact on inequality impacts at given impacts at household impacts of trade indirect utility function Log household losses marginal utilities mean impacts Mean Log Deviation mean shares Meat red Meknes Tafil Moroccan Policy 1 Policy poverty line Poverty rate pre-reform income predicted price changes processed fish 0.000 processed food products and eggs red and poultry regressions rural areas rural households rural poor sector Share of children Souss-Massa-Daraa survey data Tadla Azilal Tanger-Tetouan tariff Taza-Al Hoceima-Taounate tend Tensift Al Haouz trade reform variance in impacts vertical component World Bank