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  • Trade Liberalisation and Income Distribution: Evidence from a Small Open Economy

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    78693_1.pdf (201.7Kb)
    Author(s)
    Naranpanawa, Athula
    Bandaralage, Jayatilleke
    Griffith University Author(s)
    Bandaralage, Jayatilleke
    Naranpanawa, Athula
    Year published
    2012
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    Abstract
    Over the last few decades there has been a great deal of interest in investigating the link between trade liberalisation and income distribution in developing countries. Although there is a significant amount of empirical evidence to support the positive link between trade liberalisation and growth, the evidence on the relationship between trade liberalisation and income distribution among different household groups has been inconclusive. This study investigates the effects of trade liberalisation on income distribution in the Sri Lankan economy using a computable general equilibrium model. In terms of income distribution ...
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    Over the last few decades there has been a great deal of interest in investigating the link between trade liberalisation and income distribution in developing countries. Although there is a significant amount of empirical evidence to support the positive link between trade liberalisation and growth, the evidence on the relationship between trade liberalisation and income distribution among different household groups has been inconclusive. This study investigates the effects of trade liberalisation on income distribution in the Sri Lankan economy using a computable general equilibrium model. In terms of income distribution it can be observed that tariff reduction in manufacturing industries tends to widen the income gap between the low and the high income earners. Understanding these distributional effects of trade liberalisation will help in designing better targeted and robust welfare programmes in order to mitigate the adjustment costs of further liberalisation in developing countries like Sri Lanka.
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    Journal Title
    The Empirical Economics Letters
    Volume
    11
    Issue
    3
    Publisher URI
    Http://www.eel.my100megs.com/volume-11-number-3.htm
    Copyright Statement
    © 2012 Rajshahi University. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
    Subject
    Economic Development and Growth
    Economic Theory
    Applied Economics
    Econometrics
    Publication URI
    http://hdl.handle.net/10072/47071
    Collection
    • Journal articles

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