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What we do and don’t know about trade liberalization and poverty reduction

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Abstract

Strong opinions about the impact of globalization on poverty are not always backed by robust factual evidence. As argued in this paper, however, it is not all that easy to lay our hands on ‘robust’ facts. Quantitative analyses of trade liberalization appear highly sensitive to basic modelling and parameter assumptions. Altering these could turn the expectation that, for instance, Africa’s poor stand to gain from further trade opening under the Doha Round into one in which they would stand to lose. Most studies agree though that trade opening probably adds to aggregate welfare, but gains are small and unevenly distributed.

Suggested Citation

  • Rob Vos, 2007. "What we do and don’t know about trade liberalization and poverty reduction," Working Papers 50, United Nations, Department of Economics and Social Affairs.
    • Handle: RePEc:une:wpaper:50
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    File URL: http://www.un.org/esa/desa/papers/2007/wp50_2007.pdf
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    Cited by:

    1. JANJUA, Laeeq Razzak & MERYEM, Erraiteb & RAJA, Maryum Sajid, 2022. "Evaluating The Relationship Between Anti-Money Laundering Policies And Per Capita Consumption Expenditure - A Fresh Inside From Middle-Income Countries," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 10(1), pages 73-83, October.
    2. Nadia Belhaj Hassine & Veronique Robichaud & Bernard Decaluwé, 2010. "Agricultural Trade Liberalization, Productivity Gain and Poverty Alleviation: A General Equilibrium Analysis," Working Papers 519, Economic Research Forum, revised 05 Jan 2010.
    3. Serino, L.A., 2009. "Positive natural resource shocks and domestic adjustments in a semi-industrialized economy: Argentina in the 2004-2007 period," ISS Working Papers - General Series 18709, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.

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    More about this item

    Keywords

    computable general equilibrium models; trade policy; economic integration; trade and labour market interactions; welfare and poverty; international linkages to development; foreign exchange policy;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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