Trade Liberalisation and Income Distribution: Evidence from a Small Open Economy

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Title Trade Liberalisation and Income Distribution: Evidence from a Small Open Economy
Author Naranpanawa, Athula; Bandaralage, Jayatilleke
Journal Name The Empirical Economics Letters
Year Published 2012
Place of publication Bangladesh
Publisher Department of Economics, University of Rajshahi
Abstract Over the last few decades there has been a great deal of interest in investigating the link between trade liberalisation and income distribution in developing countries. Although there is a significant amount of empirical evidence to support the positive link between trade liberalisation and growth, the evidence on the relationship between trade liberalisation and income distribution among different household groups has been inconclusive. This study investigates the effects of trade liberalisation on income distribution in the Sri Lankan economy using a computable general equilibrium model. In terms of income distribution it can be observed that tariff reduction in manufacturing industries tends to widen the income gap between the low and the high income earners. Understanding these distributional effects of trade liberalisation will help in designing better targeted and robust welfare programmes in order to mitigate the adjustment costs of further liberalisation in developing countries like Sri Lanka.
Peer Reviewed Yes
Published Yes
Publisher URI Http://
Copyright Statement Copyright 2012 Rajshahi University. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Volume 11
Issue Number 3
Page from 239
Page to 249
ISSN 1681-8997
Date Accessioned 2012-06-03
Date Available 2013-06-03T00:18:18Z
Language en_US
Research Centre Griffith Asia Institute
Faculty Griffith Business School
Subject Economic Development and Growth
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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