This paper examines the poverty impacts of increased agricultural market access for Argentine exports. The author claims that the expansion of market access would cause the international price of Argentine exports of agro-manufactures to increase between 7.5 and 15.4 percent. Thereby, the document explores two poverty effects which are caused by these prices changes: on food expenditure and on wages. In order to achieve these objectives, the investigator employs a household budget survey to estimate the impact of higher food prices on the Argentine poverty line, and uses a labor force survey to calculate the responses of wages to changes in export prices.
The document is organized as follows. After the introductory chapter, section two describes the poverty measure introduced by the author for Argentina’s case, whilst chapter three delivers a thorough explanation on how the poverty impact analysis is conducted. Moreover, chapter four exposes the methodology introduced and section five analyzes the results obtained on poverty impact. Finally, chapter six provides some concluding arguments on the issue.
To conclude, the author claims that:
the main consequence of trade liberalization is greater international market access for Argentine products
market access would cause poverty to decline in Argentina
between 280,000 and 490,000 Argentines would be moved out of poverty if the access to international agro-manufacture markets is expanded
market access to international agricultural market does not necessarily improve living conditions in developing countries since higher household income can be outweighed by higher consumer prices