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Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty from India
Open accessAbstract
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. (JEL F13, I32, O15, O18, O19, O24)
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Cites
Distributional Effects of Globalization in Developing Countries
Goldberg, P. K., & Pavcnik, N. (2007) · Journal of Economic Literature · doi:10.1257/jel.45.1.39 · Cited by 539
Cited by
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Autor, D. H., Dorn, D., & Hanson, G. H. (2013) · American Economic Review · doi:10.1257/aer.103.6.2121 · Cited by 4,459
The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade
Autor, D. H., Dorn, D., & Hanson, G. H. (2016) · Annual Review of Economics · doi:10.1146/annurev-economics-080315-015041 · Cited by 1,305
Fajgelbaum, P. D., Goldberg, P. K., Kennedy, P. J., & Khandelwal, A. K. (2020) · The Quarterly Journal of Economics · doi:10.1093/qje/qjz036 · Cited by 1,030
Trade Adjustment: Worker-Level Evidence *
Autor, D. H., Dorn, D., Hanson, G. H., & Song, J. (2014) · The Quarterly Journal of Economics · doi:10.1093/qje/qju026 · Cited by 803
The Transitional Costs of Sectoral Reallocation: Evidence From the Clean Air Act and the Workforce*
Walker, W. R. (2013) · The Quarterly Journal of Economics · doi:10.1093/qje/qjt022 · Cited by 506
Metadata
- Authors
- Topalova, P.
- Venue
- American Economic Journal: Applied Economics
- Publisher
- American Economic Association
- Published
- 2010-10-01
- Volume
- 2
- Issue
- 4
- Pages
- 1-41
- ISSN
- 1945-7782 (ISSN-L)
- 1945-7790
- OpenAlex
- W3125034490
- Cited by
- 658
- References
- 1
- FWCI
- 30.14
- Type
- journal article
- Language
- en
- Open access
- bronze
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- Topalova, P. (2010). Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty from India. American Economic Journal: Applied Economics. https://doi.org/10.1257/app.2.4.1
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