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Trade, Trade Policy and Poverty: What Are The Links?

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Author Info
Winters, L. Alan
Abstract

This paper traces the links from trade shocks to poverty in developing countries. It considers the determinants of household and individual welfare (including potential differences between household members) and then identifies six trade-to-poverty links: the extent to which prices change and the effect of changes on the poor; links via factor markets (especially employment and wages); changes in government revenue and expenditure; changes in risk and vulnerability; effects on economic growth; and adjustment strains. There are no general results, but among the most important issues to check in each case are: whether trade reform destroys markets or creates new ones, how it affects the ability to bear risk, how labour demand shocks divide between wage and employment effects, and the country's comparative advantage.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2382.

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Date of creation: Feb 2000
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Handle: RePEc:cpr:ceprdp:2382

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Related research
Keywords: Developing Countries; Poverty; Trade Liberalization; Trade Policy;

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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  22. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September. [Downloadable!] (restricted)
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  28. Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Montalbano, Pierluigi & Federici, Alessandro & Triulzi, Umberto & Pietrobelli, Carlo, 2005. "Trade Openness and Vulnerability in Central and Eastern Europe," Working Papers RP2005/43, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  2. Emma Aisbett, 2005. "Why are the Critics so Convinced that Globalization is Bad for the Poor?," NBER Working Papers 11066, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Charles Augustine Abuka & Michael Atingi-Ego & Jacob Opolot & Marian Mraz, 2007. "The impact of OECD Agricultural trade liberalization on poverty in Uganda," The Institute for International Integration Studies Discussion Paper Series iiisdp208, IIIS. [Downloadable!]
  4. Anderson, Kym & Huang, Jikun & Ianchovichina, Elena, 2003. "Long-run impacts of China's WTO accession on farm-nonfarm income inequality and rural poverty," Policy Research Working Paper Series 3052, The World Bank. [Downloadable!]
  5. Sarbajit Chaudhuri & Shigemi Yabuuchi, 2005. "Economic Liberalization And Wage Inequality In The Presence Of Labour Market Imperfection," International Trade 0510008, EconWPA. [Downloadable!]
    Other versions:
  6. Thomas W. Hertel, 2006. "A Survey of Findings on the Poverty Impacts of Agricultural Trade Liberalization," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 3(1), pages 1-26. [Downloadable!]
  7. Thierry Verdier, 2005. "Intégration commerciale « socialement responsable » : une approche en termes d'économie politique," Revue d’économie du développement, De Boeck Université, vol. 19(4), pages 55-121. [Downloadable!]
  8. Nguyen, Anh & Jones, Nicola, 2006. "Vietnam’s Trade Liberalisation: Potential Impacts on Child Well-being," MPRA Paper 1385, University Library of Munich, Germany. [Downloadable!]
  9. Rhys Jenkins, 2004. "Globalization, production, employment and poverty: debates and evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 1-12. [Downloadable!]
  10. Hertel, Thomas W. & Winters, L. Alan, 2005. "Poverty impacts of a WTO agreement : synthesis and overview," Policy Research Working Paper Series 3757, The World Bank. [Downloadable!]
  11. McCulloch, Neil, 2003. "The impact of structural reforms on poverty : a simple methodology with extensions," Policy Research Working Paper Series 3124, The World Bank. [Downloadable!]
  12. Terry Sicular & Yaohui Zhao, 2002. "Earnings and Labor Mobility in Rural China: Implications for China's WTO Entry," University of Western Ontario, RBC Financial Group Economic Policy Research Institute Working Papers 20028, University of Western Ontario, RBC Financial Group Economic Policy Research Institute. [Downloadable!]
  13. Margaret Chitiga & Tonia Kandiero & Ramos Mabugu, 2005. "Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe," Cahiers de recherche MPIA 2005-01, PEP-MPIA. [Downloadable!]
    Other versions:
  14. Nicolas Hérault, 2004. "Un modèle d'équilibre général calculable (MEGC) pour évaluer les effets de l'ouverture au commerce international : le cas de l'Afrique du Sud," Documents de travail 102, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
  15. Liang, Zhicheng, 2006. "Threshold Estimation on the Globalization-Poverty Nexus: Evidence from China," Working Papers RP2006/57, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  16. Robilliard, Anne-Sophie & Robinson, Sherman, 2005. "The social impact of a WTO agreement in Indonesia," Policy Research Working Paper Series 3747, The World Bank. [Downloadable!]
  17. Gayi, Samuel K., 2006. "Does the WTO Agreement on Agriculture Endanger Food Security in Sub-Saharan Africa?," Working Papers RP2006/60, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  18. Jones, Nicola & Nguyen, Ngoc Anh & Nguyen, Thu Hang, 2007. "Trade liberalisation and intra-household poverty in Vietnam: a q2 social impact analysis," MPRA Paper 4206, University Library of Munich, Germany. [Downloadable!]
  19. Julie Litchfield & Neil McCulloch, 2003. "Poverty in Zambia: Assessing the Impacts of Trade Liberalisation in the 1990s," PRUS Working Papers 16, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  20. Sarbajit Chaudhuri, 2005. "International Migration Of Skilled And Unskilled Labour, Welfare And Skilled-Unskilled Wage Inequality: A Simple Model," International Trade 0510011, EconWPA. [Downloadable!]
  21. L. Alan Winters, 2000. "Trade Liberalisation and Poverty," PRUS Working Papers 07, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
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