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Poverty effects of Russia's WTO accession : modeling "real" households and endogenous productivity effects

Author: Thomas Fox Rutherford; David G Tarr; Oleksandr Shepotylo; World Bank,
Publisher: Washington, D.C. : World Bank, Development Research Group, Trade Team, January 2005.
Series: Policy research working papers, 3473.
Edition/Format:   eBook : Document : International government publication : EnglishView all editions and formats
Database:WorldCat
Summary:
"Rutherford, Tarr, and Shepotylo use a computable general equilibrium comparative static model of the Russian economy to assess the impact of accession to the World Trade Organization (WTO) on income distribution and the poor. Their model is innovative in that they incorporate all 55,000 households from the Russian Household Budget Survey as "real" households in the model. This is accomplished because they develop a  Read more...
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Genre/Form: Electronic books
Additional Physical Format: Print version:
Rutherford, Thomas Fox.
Poverty effects of Russia's WTO accession.
Washington, D.C. : World Bank, Development Research Group, Trade Team, [2005]
(OCoLC)58049200
Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Thomas Fox Rutherford; David G Tarr; Oleksandr Shepotylo; World Bank,
OCLC Number: 647587518
Notes: Title from caption (October 23, 2013).
Reproduction Notes: Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. MiAaHDL
Description: 1 online resource (65 pages in various pagings) : illustrations, graphs.
Details: Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Series Title: Policy research working papers, 3473.
Other Titles: World Bank e-Library Research Working Papers.
Responsibility: by Thomas Rutherford, University of Colorado, David Tarr, the World Bank, Oleksandr Shepotylo, University of Maryland.

Abstract:

"Rutherford, Tarr, and Shepotylo use a computable general equilibrium comparative static model of the Russian economy to assess the impact of accession to the World Trade Organization (WTO) on income distribution and the poor. Their model is innovative in that they incorporate all 55,000 households from the Russian Household Budget Survey as "real" households in the model. This is accomplished because they develop a new algorithm for solving general equilibrium models with a large number of agents. In addition, they include foreign direct investment and Dixit-Stiglitz endogenous productivity effects in their trade and poverty analysis. In the medium term, the authors find that virtually all households gain from Russian WTO accession, with 99.9 percent of the estimated gains falling within a range between 2 and 25 percent increases in household income. They show that their estimates are decisively affected by liberalization of barriers against foreign direct investment in business services sectors and endogenous productivity effects in business services and goods. The authors use their integrated model to assess the error associated with a 'top down' approach to micro-simulation. They find that approximation errors introduced by failing to account for income effects in the conventional sequential approach are very small. However, data reconciliation between the national accounts and the household budget survey is important to the results. Despite the estimated gains for virtually all households in the medium term, many households may lose in the short term because of the costs of transition. So, safety nets are crucial for the poorest members of society during the transition. This paper--a product of the Trade Team, Development Research Group--is part of a larger effort in the group to assess the impact of trade on poverty"--Abstract.

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