Trade liberalization and poverty reduction

Abstract

aUthOr's MaiN MessaGeBoth cross-country regression studies and single-country studies support the claim that liberalizing trade will reduce poverty.Both China and India, the greatest examples of the positive effects of trade on poverty, experienced huge reductions in poverty following extensive trade reforms.However, not all studies find significant positive gains from trade reforms.What seems to matter for the impact of trade on poverty is having the right kind of domestic institutions and policies.Greater road density, sensible labor regulations, and greater financial development enhance this impact. trade liberalization and poverty reductionTrade can reduce poverty when accompanied by appropriate policies and institutions Keywords: international trade,

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