Using the cointegration and error correction methodologies, this article studies the impact of trade liberalization on the supply of exports and poverty in Guyana from the early 1980s to the mid-2010s. From the empirical results of this study, two important points emerge. The first point is that, for Guyana, trade liberalization has resulted in the expansion of the country’s supply of exports and the reduction in its poverty rate. The second point is that the impact of trade liberalization on export supply and poverty has been quite small. In addition, this study finds that the real effective exchange rate and the growth of the economy along with the growth of the agricultural sector were important drivers for expanding the country’s supply of exports and reducing its poverty rate over the period covered in this study.
AhmedN. (2000). Export response to trade liberalization in Bangladesh: A cointegration analysis. Applied Economics, 32, 1077-1084.
2.
AllaroH. B. (2012). The impact of trade liberalization on Ethiopia’s trade balance. American Journal of Economics, 2, 75-81.
3.
AndersonK. (2004). Agriculture trade reform and poverty reduction in developing countries. World Bank Policy Research Working Paper 3396. World Bank, Washington, DC.
4.
ArslanI.WijnbergenS. V. (1993). Export incentives, exchange rate policy and export growth in Turkey, Review of Economics and Statistics, 75, 128-133.
5.
BabatundeM. A. (2009). Can trade liberalization stimulate export performance in Sub-Saharan Africa?Journal of International and Global Economic Studies, 2, 68-92.
CashinP.PattilloC. A.SahayR.MauroP. (2001). Macroeconomic policies and poverty reduction: Stylized facts and an overview of research (IMF Working Paper 01/135). Washington, DC: International Monetary Fund.
8.
ChaudhryI. S.ImranF. (2013). Does trade liberalization reduce poverty and inequality? Empirical evidence from Pakistan. Pakistan Journal of Commerce and Social Sciences, 7(3), 569-587.
9.
ClarkeR.KirkpatrickC. (1992) Trade policy reform and economic performance in developing countries: Assessing the empirical evidence. In AdhikariR.KirkpatrickC.WeissJ. (Eds.), Industrial and trade policy reform in developing countries. (pp. 56-73) Manchester, UK: Manchester University Press.
10.
DollarD.KraayA. (2004). Trade, growth, and poverty. The Economic Journal, Blackwell Publishing, 114, F22-F49.
11.
Egoumé-BossogoP.FaalE.NallariR.WeismanE. (2003). Guyana: Experience with macroeconomic stabilization, structural adjustment, and poverty reduction. Washington, DC: International Monetary Fund.
12.
FainiR. (1994). Export supply, capacity and relative prices. Journal of Development Economics, 45, 81-100.
13.
GafarJ. (2003). Guyana: From state control to free markets. New York, NY: Nova Science.
14.
GhaniG. (2011). The impact of trade liberalization on the economic performance of OIC member countries. Journal of Economic Cooperation and Development, 32(1), 1-18.
15.
GhuraD.LeiteC. A.TsangaridesC. (2002). Is growth enough? Macroeconomic policy and poverty reduction (IMF Working Paper 02/118). International Monetary Fund, Washington, DC.
16.
GoldsteinM.KhanM. (1985). Income and price effects in foreign trade. In JonesR. WKenenP. B (Eds.), Handbook of international economics (Vol. 11, pp. 1041-1105), Elsevier Science Publishers B.V. Amsterdam.
17.
GreenawayD.SapsfordD. (1994). What does liberalization do for exports and growth?Weltwirtschaftliches Archiv, 130, 152-174.
18.
HelleinerG. K (Ed.). (1994). Trade policy and industrialization in turbulent times. London, England: Routledge.
19.
International Monetary Fund. (2006). Guyana: Poverty Reduction Strategy Paper Progress Report 2005. International Monetary Fund. Washington, DC pp.1-18.
20.
International Monetary Fund. (2016). International financial statistics. Available from http://data.imf.org/IFS
21.
JenkinsR. (1996). Trade liberalization and export performance in Bolivia. Development and Change, 27, 693-716.
22.
JhaV.NedumparaJ.GuptaS. (2004). Poverty Impact of DOHA: India, The Doha Development Agenda Impacts on Trade and Poverty, Overseas Development Institute, London.
23.
JoshiV.LittleI. M. D. (1996). India’s economic reforms, 1991-2001. Oxford, UK: Oxford University Press.
24.
KassimL. (2013). The impact of trade liberalisation on export growth and import growth in Sub-Saharan Africa (School of Economics Discussion Papers, KDPE 1310). Canterbury, UK: University of Kent.
25.
KruegerA. (1983). Trade and employment in developing countries, Volume 3: Synthesis and conclusions. Chicago, IL: University of Chicago Press.
26.
Le GoffM.SinghR. J. (2014). Does trade reduce poverty? A view from Africa. Journal of African Trade, 1, 5-14.
27.
ModesteN. C. (2016). Trade liberalization and economic growth in Guyana: An empirical assessment using DOLS and error correcting methodologies. Review of Black Political Economy, 43, 57-67.
28.
NarayanP. K. (2005). The saving and investment nexus for China: Evidence from cointegration tests. Applied Economics, 37, 1979-1990.
29.
PesaranM. H.ShinY.SmithR.J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, John Wiley & Sons Ltd, 16, 289-326.
30.
RavallionM. (2004). Looking beyond averages in the trade and poverty debate (World Bank Policy Research Working Paper No. 3461) November 2004. Washington, DC: The World Bank.
31.
Santos-PaulinoA. U. (2002). Trade liberalisation and export performance in selected developing countries. Journal of Development Studies, 39, 140-164.
ShafaeddinS. M. (1994). The impact of trade liberalization on export and GDP in least developed countries (UNCTAD Discussion Paper No. 85). Geneva, Switzerland: United Nations Conference on Trade and Development.
34.
ThomasC. Y.RampersaudR. (1991). The CAMBIO-system of an independent exchange rate float: The case of Guyana. Social and Economic Studies, 40, 115-146.
35.
ThomasV.NashJ. (1991). Best practices in trade policy reform. Oxford, UK: Oxford University Press.
36.
United Nations Conference on Trade and Development. (2008). Export performance following trade liberalization: Some patterns and policy perspectives. New York, NY: United Nations.
37.
WeissJ. (1992). Export response to trade reforms: Recent Mexican experience. Development Policy Review, 10, 43-60.
38.
WintersL.A. (2000). Trade and Poverty: Is there a connection? In: BenDD.NordstromH.WintersL.A. (eds.) Trade, Income Disparity, and Poverty. (pp. 43-69) World Trade Organisation, Geneva, Switzerland.
39.
WintersN.McCullochN.McKayA. (2004). Trade liberalization and poverty: The evidence so far. Journal of Economic Literature, 42, 72-115.
40.
The World Bank. (1994). Guyana strategies for reducing poverty (Report No. 12861-GUA, A Document of the World Bank). World Bank, Washington, DC
The World Bank. (2018). World Bank supports financial and fiscal resilience in Guyana (Press release).
43.
World Bank (2017). World Integrated Trade Solution (WITS). Available from Wits.worldbank.orgWorld Bank, Washington, DC
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
