International Market Access and Poverty in Argentina |
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| Authors: | Guido Porto |
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| Institution: | 1. Development Research Group, The World Bank, Washington, USA;2. I wish to thank I. Brambilla, B. Hoekman, A. Nicita, M. Olarreaga, and I. Soloaga for very valuable comments. I have benefited from suggestions and comments of seminar participants at Universidad Di Tella, Universidad de La Plata, and the LACEA (Latin America and Caribbean Economic Association) Meetings. All errors are my responsibility. |
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| Abstract: | This paper examines the impact of access to international agro‐manufacture markets on poverty in Argentina. Estimates from the literature suggest that expanded market access would cause the international price of Argentine exports of agro‐manufactures to increase by between 8.7% and 15.9%. I explore two poverty effects caused by these prices changes: on food expenditure and on wages. Using a household budget survey, I estimate the impact of higher food prices on the Argentine poverty line. Using a labor force survey, I estimate the responses of wages to changes in export prices. My main finding is that market access would cause poverty to decline in Argentina. From a national head count of 29.26%, the poverty rate would decline to between 28.28% and 28.80%. This means that between 161,000 and 343,000 Argentines would be moved out of poverty. |
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