TRADE LIBERALIZATION AND SOCIO-ECONOMIC VULNERABILITY: A CROSS COUNTRY ANALYSIS ON THE SHRIMP SECTOR

Abstract

This study attempts to capture the impact of trade liberalization on the shrimp sector of three countries, namely Bangladesh, India and Vietnam. By analyzing the country specific studies from these three countries, the study found that trade liberalization in the shrimp sector of these countries increases export earnings and creates gainful employment opportunity, especially for women. In spite of these positive impacts, the study finds that shrimp sector has been expanded at the cost of agricultural land, which increases household’s vulnerability through replacement of subsistence farming by commercial aquaculture and reduced livelihood options. Increasing income gap reduces the ability of the poor to fight against risk and consumption volatility. By analyzing the comparable elements among three countries, this study reaches to the conclusion that structural shift from crop farming to shrimp farming in the respective areas affect the determinants of poverty, which can be explained for defining the status of vulnerability of the households. This study is important in case of providing a comparable base line for assessing the impact of trade liberalization of the respective countries. This might be an important insight to the policy makers while assessing the impact on the shrimp sector at the household level.