Trade liberalization, pollution and poverty : evidence from Lao PDR

Date

2011

Journal Title

Journal ISSN

Volume Title

Publisher

EEPSEA, IDRC Regional Office for Southeast and East Asia, Singapore, SG

Abstract

The study uses a Computable General Equilibrium (CGE) model to analyze the impact of trade liberalization on pollution and poverty in Lao PDR. Results show that trade liberalization has a small but positive effect on growth. As well, trade liberalization slightly decreases CO2 emissions, due mainly to declining output in some sectors. In terms of socio-economic impact, findings show that households in Vientiane, (capital city) and non-poor urban households will benefit most from trade liberalization, whereas many poor rural households will suffer a drop in income. Recommendations include finding ways to protect rural populations and strengthening regulations to protect the environment.

Description

Keywords

LAOS, TRADE LIBERALIZATION, RESOURCES DEPLETION, POVERTY, NATURAL RESOURCES, POLLUTION, POLICY MAKING, GOVERNMENT POLICY, ECONOMIC GROWTH, TRADE AGREEMENTS, MACROECONOMICS, TARIFFS, ENVIRONMENTAL DEGRADATION, FAR EAST ASIA

Citation

DOI