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Factor Immobility and Regional Impacts of Trade Liberalization Evidenceon Poverty From India, Petia Topalova

This paper uses the 1991 Indian trade liberalization to measure the impact of trade liberalization on poverty, and to examine the mechanisms underpinning this impact. Variation in sectoral composition across districts and liberalization intensity across production sectors allows a difference-in-difference approach. Rural districts, in which production sectors more exposed to liberalization were concentrated, experienced slower decline in poverty and lower consumption growth. The impact of liberalization was most pronounced among the least geographically mobile, at the bottom of the income distribution, and in Indian states where inflexible labor laws impeded factor reallocation across sectors
Table Of Contents
Contents; I. Introduction; II. Background; A. Trade Reform in India; B. Data; III. Empirical Strategy; A. Empirical Framework; B. Measurement of Regional Exposure to Trade Liberalization; IV. Results; A. Main Findings; B. Robustness; V. Mechanisms; A. Conceptual Framework; B. Reallocation Across Regions; C. Reallocation Across Production Sectors; D. Trade Liberalization and Institutional Characteristics; E. Trade Liberalization and Factor Returns; VI. Conclusion; Tables; Figures; Appendix. Data Sources; Appendix Table; References
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (48 p.)
Specific Material Designation
Form Of Item

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