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  • Does trade liberalization promote regional disparities? Evidence from a multiregional CGE model of India

    Author(s)
    Naranpanawa, Athula
    Arora, Rashmi
    Griffith University Author(s)
    Naranpanawa, Athula
    Year published
    2014
    Metadata
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    Abstract
    Over last few decades, there has been a growing interest among researchers in understanding the link between trade liberalization and regional disparities within the context of an individual country. In this study, we develop the first ever single-country multiregional Computable General Equilibrium (CGE) model for the Indian economy to investigate this linkage. Overall our results suggest that, in the short run, trade liberalization has a beneficial impact on the rich and fast-growing middle-income states and a marginal or negative impact on the poor states.Over last few decades, there has been a growing interest among researchers in understanding the link between trade liberalization and regional disparities within the context of an individual country. In this study, we develop the first ever single-country multiregional Computable General Equilibrium (CGE) model for the Indian economy to investigate this linkage. Overall our results suggest that, in the short run, trade liberalization has a beneficial impact on the rich and fast-growing middle-income states and a marginal or negative impact on the poor states.
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    Journal Title
    World Development
    Volume
    64
    DOI
    https://doi.org/10.1016/j.worlddev.2014.06.001
    Subject
    Economics
    Human society
    Other human society not elsewhere classified
    Publication URI
    http://hdl.handle.net/10072/64115
    Collection
    • Journal articles

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