Cover IMF Working Papers
Buy Book in Print
Factor Immobility and Regional Impacts of Trade Liberalization Evidenceon Poverty From India
Author:
Petia Topalova null

Search for other papers by Petia Topalova in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2010: Issue 218
Language:
English
Publication Date:
01 Sep 2010
DOI:
https://doi.org/10.5089/9781455208838.001
ISBN:
9781455208838
ISSN:
1018-5941
Pages:
46
Keywords:
WP; trade policy; dependent variable; labor market; Poverty; Trade Liberalization; India; Tariff; poverty rate; wage premia; post liberalization indicator; production sector; trade liberalization link; D. trade liberalization; trade liberalization Evidenceon poverty; liberalization dummy; poverty-tariff link; analysis of the trade liberalization-poverty link; trade reform; Tariffs; Consumption; Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1 MB) Download Epub
This paper uses the 1991 Indian trade liberalization to measure the impact of trade liberalization on poverty, and to examine the mechanisms underpinning this impact. Variation in sectoral composition across districts and liberalization intensity across production sectors allows a difference-in-difference approach. Rural districts, in which production sectors more exposed to liberalization were concentrated, experienced slower decline in poverty and lower consumption growth. The impact of liberalization was most pronounced among the least geographically mobile, at the bottom of the income distribution, and in Indian states where inflexible labor laws impeded factor reallocation across sectors.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund