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Does trade liberalization promote regional disparities? Evidence from a multiregional CGE model of India
Naranpanawa, A.
Naranpanawa, A.
Publication Date
2014-12
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© 2014 Elsevier. Reproduced in accordance with the publisher's self-archiving policy. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
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Accepted for publication
2014-06-04
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Abstract
Over last few decades, there has been a growing interest among researchers in understanding the link between trade liberalization and regional disparities within the context of an individual country. In this study, we develop the first ever single-country multiregional Computable General Equilibrium (CGE) model for the Indian economy to investigate this linkage. Overall our results suggest that, in the short run, trade liberalization has a beneficial impact on the rich and fast-growing middle-income states and a marginal or negative impact on the poor states.
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Accepted Manuscript
Citation
Naranpanawa A and Arora RU (2014) Does trade liberalization promote regional disparities? Evidence from a multiregional CGE model of India. World Development. 64: 339-349.
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