Author Affiliation, Ana.
Department of Economics
Balance of payments liberalization, poverty, and distribution in Jamaica
Ganuza, Enrique; Paes de barros, Ricardo; Taylor, Lance; Vos, Rob
Liberalizacion, Desgualdad y Pobreza: America Latina y el Caribe en los 90
Place of Publication
Editoral Universitaria de Buenos Aires
Date of Publication
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Series Volume Identification
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A CGE model with macro-simulation extensions is used to isolate the effect of balance-of-payments liberalization on poverty and distribution in Jamaica. Taken as a whole, the results indicate that balance of payments liberalization will have a positive but small effect on the economic welfare of the poor, although the extent of the impact depends on the type of policy implemented. By far the 'best' policy from a poverty standpoint is capital account liberalization, with current account liberalization delivering smaller declines in poverty. For both policies, it is the extremely poor who are likely to benefit the most. The results imply that trade and payments reform by itself played only a small but nontheless positive role in the observed poverty and distribution outcomes in Jamaica in the 1990s.....