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Poverty Reduction in Thailand. Sugar high and tobacco addiction. Presented by Mia and Mitch GTAP 2007. Poverty Impacts. Experiment: Unilateral liberalization of other food and beverages 4% of total value total imports 3.5% of total value of output
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Poverty Reduction in Thailand Sugar high and tobacco addiction Presented by Mia and Mitch GTAP 2007
Poverty Impacts Experiment: • Unilateral liberalization of other food and beverages • 4% of total value total imports • 3.5% of total value of output • Resulted in 58 percent increase in imports Pre-liberalization: 1.18 million in $1day poverty Post liberalization 30,700 people released from poverty terms of trade: -0.4399 average utility per capita: 0.3543
Thai unilateral liberalization of other food and beverage Term of Trade: -0.4399 AUP: 0.3543 Released from Poverty: 30,700 Rich Ag liberalization +Thai other food/bev Terms of Trade: 0.815 1.29 rich liberalization -.48 Thai liberalization AUP: 1.42 1.08 rich liberalization 0.36 Thai liberalization Released from Poverty: 70,000 40,000 rich liberalization 30,000 Thai liberalization Adding in Rich Country Ag Liberalization
Findings and Conclusions • Participating in liberalization, increases benefits for the poor • Opening sector with high concentration of poor, does not necessary hurt them • Rural diversified and Ag self-employed exhibit the greatest reduction in poverty • Factor prices increases and decreasing costs of living work together to reduce poverty • Tax replacement method important because increasing taxes increase poverty