Trade Integration with the European Union: Poverty Impacts in Ecuador

Abstract:

The government of Ecuador is seeking to negotiate a trade agreement with the European Union (EU). This study examines the impacts of such a trade agreement on rural and urban poverty in Ecuador by combining a household income and occupational choice model with a computable general equilibrium model. The results suggest that a trade agreement with the EU may have a significant impact on poverty. However, the nature and extent of the impact varies depending on the degree of initial tariff reduction, labor market considerations, and whether Ecuadorian bananas are granted better access to the EU market. © 2012 ESPOL. The Developing Economies © 2012 Institute of Developing Economies.

Año de publicación:

2012

Keywords:

• Latin America
• ECUADOR
• Micro simulations
• TRADE AGREEMENTS
• POVERTY
• Computable general equilibrium model

Fuente:

scopus