The Distributional Impacts of Trade

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3. Moreover, the costs of adjustment on select industries and workers are often visible earlier than the highly diffused benefits from reforms experienced by consumers and exporting and importing firms. These distributional and temporal problems can lead to half-hearted implementation, reform reversals and dissuade policy makers from pursuing future efforts toward liberalization. 4. See, for example, Bas (2014) on India and Beverelli, Fiorini, and Hoekman (2017) for a sample of 56 countries at different stages of development. 5. Trade facilitation programs and policies can cover the full spectrum of border procedures, from the electronic exchange of data about a shipment, to the simplification and harmonization of trade documents and processes, to the implementation of measures to enhance transparency and predictability for traders. 6. McKenzie (2017) reviewed 24 randomized control trials. The one successful program focused on addressing spatial mismatches by providing young rural women in India with information about job opportunities in business process outsourcing (Jensen 2012).

References Acemoglu, Daron, Asuman Ozdaglar, and Alireza Tahbaz-Salehi. 2015. “Systemic Risk and Stability in Financial Networks.” American Economic Review 105 (2): 564–608. Akman, Sait, Clara Brandi, Uri Dadush, Peter Draper, Andreas Freytag, Miriam Kaut, Peter Rashish, Johannes Schwarzer, and Rob Vos. 2018. “Mitigating the Adjustment Costs of International Trade.” G20 Argentina: Trade, Investment and Tax Cooperation Task Force Brief. https://www​ .g20-insights.org/wp-content/uploads/2018/06/mitigating-the-adjustment-costs-of​ -international-trade-1529419478.pdf. Akman, Sait, Shiro Armstrong, Carlos Primo Braga, Uri Dadush, Anabel Gonzalez, Fukunari Kimura, Junji Nagakawa, Peter Rashish, and Akihiko Tamura. 2019. “The Crisis in World Trade.” Policy Brief, Policy Center for the New South. https://voxeu.org/content/crisis-world-trade. Alfani, Federica, Aslihan Arslan, Nancy McCarthy, Romina Cavatassi, and Nicholas Sitko. 2019. “Climate Change Vulnerability in Rural Zambia: The Impact of an El Niño-Induced Shock on Income and Productivity.” FAO Agricultural Development Economics Working Paper 2019/02. https://www.researchgate.net/publication/331248533_Climate-change ​ _ vulnerability ​ _ in​ _rural_Zambia_the_impact_of_an_El_Nino-induced_shock_on_income_and_productivity. Alfaro-Ureña, Alonso, Isabela Manelici, and José P. Vásquez. 2019. “The Effects of Joining Multinational Supply Chains: New Evidence from Firm-to-Firm Linkages.” Supply Chain Management eJournal. http://dx.doi.org/10.2139/ssrn.3376129. Amiti, Mary, Mi Dai, Robert Feenstra, and John Romalis. 2017. “How Did China’s WTO Entry Benefit US Consumers?” Staff Report 817, Federal Reserve Bank of New York. https://ideas.repec.org/p​ /­fip/fednsr/817.html. Amiti, Mary, and Joseph Konings. 2007. “Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia.” American Economic Review 97 (5): 1611–38. Anand, Rahul, and Purva Khera. 2016. “Macroeconomic Impact of Product and Labor Market Reforms on Informality and Unemployment in India.” Working Paper 16/47, International Monetary Fund, Washington, DC. Artuç, Erhan, Robert Cull, Susmita Dasgupta, Roberto Fattal, Deon Filmer, Xavier Giné, Hanan Jacoby, Dean Jolliffe, Hiau Looi Kee, Leora Klapper, Aart Kraay, Norman Loayza, David McKenzie, Berk Azler, Vijayendra Rao, Bob Rijkers, Sergio Schmukler, Michael Toman, Adam Wagstaff, and Michael Woolcock. 2020. “Toward Successful Development Policies: Insights from Research in Development Economics.” Policy Research Working Paper 9133, World Bank, Washington, DC. Artuç, Erhan, Daniel Lederman, and Guido Porto. 2015. “A Mapping of Labor Mobility Costs in the Developing World.” Journal of International Economics 95 (1): 28–41.

Fostering Inclusive Trade: A Policy Agenda 97


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Articles inside

A.1 Methodological Approaches Applied in the Case Studies

5min
pages 128-131

References

16min
pages 119-127

Flourish

4min
pages 116-117

Their Impacts

2min
page 113

Implementing a Policy Agenda for Inclusive Trade

4min
pages 114-115

4.1 Overview of Complementary Policies

22min
pages 103-112

Complementary Policy Priorities for Inclusive Trade

2min
page 102

3.1 Assessment of Trade Policy Changes on Sri Lankan Welfare

2min
page 93

Conclusion

4min
pages 94-95

Subnational Level

2min
page 90

Brazil: How Trade Shocks Affect Wages and Job Opportunities across Regions and Industries

4min
pages 85-86

South Africa: How Apartheid’s Legacy Shapes the Impact of Trade Liberalization on Local Communities

2min
page 83

Bangladesh: How a Shock in Textiles and Apparel Spreads through Local Communities and across the Economy

2min
page 79

and Are More Unequal

4min
pages 77-78

Mexico: How Rising Exports Affect Local Poverty and Inequality

2min
page 76

Introduction

4min
pages 74-75

References

14min
pages 66-72

Notes

2min
page 65

Conclusion

2min
page 64

Imperfect Pass-Through of Tariff Prices to Consumers

2min
page 63

2.4 New Approaches to Measure Consumption Impacts

6min
pages 60-62

Impacts on Consumer Prices and Cost of Living

2min
page 59

Understanding Hefty Adjustment Costs

6min
pages 56-58

Tariffs Database

5min
pages 50-51

2.3 Informal Labor Markets and Trade

4min
pages 54-55

Local Labor Markets in Developing Countries

2min
page 49

2.1 Extensions of “The China Syndrome”

4min
pages 47-48

A Framework for Understanding the Distributional Impacts of Trade

4min
pages 43-44

Value Added and Road Map

7min
pages 34-36

Impacts on Labor Market Outcomes

4min
pages 45-46

2 Understanding Winners and Losers with the Household Impacts of

2min
page 24

ES.1 Case Studies Show Different Political and Economic Dynamics in Trade Reforms

3min
pages 27-28

1.4 Structure of This Report

1min
page 37

Why Distributional Issues Matter

2min
page 33
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