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File2-page180 - IMF – 8 year plan – link We could have...

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Pavcnik (2002) Openness and Economic Performance poverty and inequality Caveat: the paper is weak on establishing mechanisms linking trade lib- eralization to rural (and not urban) poverty and in convincing the reader that it is trade liberalization (and not some other policy change) that is actually driving the results What is the mechanism? striking result but the question that the paper raises is why there is a link between exposure to trade liberalization and rural (and not urban) poverty key difference in india as compared to other countries experiencing trade liberalisation – tariff reductions in agriculture The fact that agriculture was liberalised in contrast to other developing countries is both interesting and central to the results presented Why did liberalization of agricultural tariffs take place in India and not elsewhere? Is this an exogenous or endogenous shift in policy
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Unformatted text preview: IMF – 8 year plan – link? We could have an idea of the exact contents of the IMF recommendations, it could clarify the issue and help argue the case that the tariffs were ex-ogenous Need a clearer picture of the breakdown of tariff reduction across sectors Would like to see more basic work that looks breaks out tariff reductions to see which ones are driving the results Break out tariff dt into agricultural, manufacturing and other components If it is, for e.g., reduction of agricultural tariffs that are driving the results, then point to more speci±c mechanisms What is the role of services (which are non-traded and important) in this story Need for more empirical work in this area looking at how, for e.g., reduc-Development Economics, LSE Summer School 2007 177...
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