Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10477151 | Journal of International Economics | 2005 | 24 Pages |
Abstract
This paper investigates the poverty impacts of informal export barriers like transport costs, cumbersome customs practices, costly regulations and bribes. In low-income countries, these informal barriers act as export taxes that distort the efficient allocation of resources, lower wages and agricultural income, and increase poverty. I investigate the case of Moldova, a very open economy where poverty is widespread, agriculture is a key sector, formal trade barriers are low, and informal export barriers are widespread. I find that improving export practices would benefit the average Moldovan household across the whole income distribution. Poverty would also decline, affecting 100-180 thousand individuals.
Related Topics
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Authors
Guido G. Porto,