Trade, Growth, and Poverty: A Selective Survey

February 1, 2003

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Andrew Berg, and Anne O. Krueger Trade, Growth, and Poverty: A Selective Survey, (USA: International Monetary Fund, 2003) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This survey of the recent literature asks: how important is trade policy for poverty reduction? We consider the effects of openness on poverty in two components: the effect of openness on average income growth, and the effect on distribution for a given growth rate. Evidence from a variety of sources (cross-country and panel growth regressions, industry and firm-level research, and case studies) supports the view that trade openness contributes greatly to growth. Moreover, trade openness does not have systematic effects on the poor beyond its effect on overall growth. Trade policy is only one of many determinants of growth and poverty reduction. Trade openness has important positive spillovers on other aspects of reform, however, so that the correlation of trade with other pro-reform policies speaks to the advantages of making openness a primary part of the reform package.

Subject: Exports, Income distribution, International trade, National accounts, Personal income, Trade liberalization, Trade policy

Keywords: Africa, Asia and Pacific, East Asia, Exports, Growth, Impact trade liberalization, Income distribution, Infant industry argument, Liberalization episode, Liberalization event study, Openness, Per capita income, Personal income, Poverty, South Asia, Sub-Saharan Africa, Trade, Trade liberalization, Trade liberalizations in the presence, Trade openness, Trade policy, Trade protection, Trade reform, Trade share, WP

Publication Details

Pages:

51
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2003/030
Stock No:

WPIEA0302003
ISBN:

9781451844931
ISSN:

1018-5941

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