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  • Can trade liberalisation bring benefits to the war-affected regions and create economic stability in post-war Sri Lanka?

    Author(s)
    Naranpanawa, Athula
    Bandara, Jayatilleke
    Griffith University Author(s)
    Bandaralage, Jayatilleke
    Naranpanawa, Athula
    Year published
    2017
    Metadata
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    Abstract
    Purpose – There is a large body of literature on the link between trade liberalisation, growth and poverty. However, less attention has been paid to the relationship between trade and regional disparities. The purpose of this paper is to identify and quantify the regional impacts of trade liberalisation, particularly in the war-affected regions and to understand to what extent trade reforms can contribute to the post-war recovery process and long-term economic and political stability in Sri Lanka. Design/methodology/approach – The authors developed a single country multi-regional computable general equilibrium (CGE) model ...
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    Purpose – There is a large body of literature on the link between trade liberalisation, growth and poverty. However, less attention has been paid to the relationship between trade and regional disparities. The purpose of this paper is to identify and quantify the regional impacts of trade liberalisation, particularly in the war-affected regions and to understand to what extent trade reforms can contribute to the post-war recovery process and long-term economic and political stability in Sri Lanka. Design/methodology/approach – The authors developed a single country multi-regional computable general equilibrium (CGE) model for the Sri Lankan economy to meet the need for a detailed country study as emphasised in the recent literature. Findings – Both short-run and long-run results suggest that all regions including war-affected regions in the country gain from trade liberalisation, although gains are uneven across regions. Furthermore, the results suggest that war-affected regions gain more relative to some other regions in the long run. Originality/value – According to the best of the authors’ knowledge within country regional impact of trade liberalisation using a multi-regional CGE model has never been attempted for Sri Lanka. The results of this study, even though based on Sri Lankan data, will be relevant to other developing countries engulfed in internal conflicts with regional economic disparities.
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    Journal Title
    International Journal of Social Economics
    Volume
    44
    Issue
    12
    DOI
    https://doi.org/10.1108/IJSE-06-2016-0169
    Subject
    Economics not elsewhere classified
    Applied Economics
    Other Economics
    Publication URI
    http://hdl.handle.net/10072/372975
    Collection
    • Journal articles

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