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Looking Beyond Averages in the Trade and Poverty Debate

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  • Martin Ravallion

Abstract

There has been much debate about how much poor people in developing countries gain from trade openness, as one aspect of ‘globalization’. The paper views the issue through both ‘macro’ and ‘micro’ empirical lenses. The macro lens uses cross-country comparisons and aggregate time series data; the micro lens uses household-level data combined with structural modelling of the impacts of specific trade reforms. Case studies are presented for China and Morocco. Both the macro and micro approaches cast doubt on some widely heard generalizations from both sides of the globalization debate. Additionally the micro lens indicates considerable heterogeneity in the welfare impacts of trade openness, with both gainers and losers among the poor. A number of covariates of the individual gains are identified. The results point to the importance of combining trade reforms with well-designed social protection policies. [Research Paper No. 2005/29]

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Paper provided by eSocialSciences in its series Working Papers with number id:3258.

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Date of creation: Dec 2010
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Handle: RePEc:ess:wpaper:id:3258

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Keywords: trade; globalization; poverty; inequality; China; Morocco;

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References

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Citations

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Cited by:
  1. Yin Zhang & Guanghua Wan, 2006. "Globalization and the Urban Poor in China," Dundee Discussion Papers in Economics, Economic Studies, University of Dundee 196, Economic Studies, University of Dundee.
  2. Driouchi, Ahmed, 2009. "Failure of Participation & “Missing Women” in South Mediterranean Economies," MPRA Paper, University Library of Munich, Germany 21541, University Library of Munich, Germany, revised 22 Mar 2010.
  3. Margaret McMillan & Alix Peterson Zwane & Nava Ashraf, 2005. "My Policies or Yours: Does OECD Support for Agriculture Increase Poverty in Developing Countries?," NBER Working Papers, National Bureau of Economic Research, Inc 11289, National Bureau of Economic Research, Inc.
  4. Liang, Zhicheng, 2006. "Threshold Estimation on the Globalization-Poverty Nexus: Evidence from China," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2006/57, World Institute for Development Economic Research (UNU-WIDER).
  5. Ann Harrison, 2006. "Globalization and Poverty," NBER Working Papers, National Bureau of Economic Research, Inc 12347, National Bureau of Economic Research, Inc.
  6. Aksoy , M. Ataman & Isik-Dikmelik, Aylin, 2008. "Are low food prices pro-poor ? net food buyers and sellers in low-income countries," Policy Research Working Paper Series, The World Bank 4642, The World Bank.
  7. Chris Papageorgiou & Subir Lall & Florence Jaumotte, 2008. "Rising Income Inequality," IMF Working Papers, International Monetary Fund 08/185, International Monetary Fund.
  8. Prema-Chandra Athukorala, 2011. "Trade Liberalisation and The Poverty of Nations: A Review Article," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 47(3), pages 533-543.
  9. Arne Wiig, 2009. "Aid for trade: A misdirected initiative?," CMI Working Papers, CMI (Chr. Michelsen Institute), Bergen, Norway 4, CMI (Chr. Michelsen Institute), Bergen, Norway.
  10. Tobin, Damian & Sun, Laixiang, 2009. "International Listing as a Means to Mobilize the Benefits of Financial Globalization: Micro-level Evidence from China," World Development, Elsevier, Elsevier, vol. 37(4), pages 825-838, April.
  11. Rios, Ana R. & Shively, Gerald E. & Masters, William A., 2009. "Agricultural Prices and Income Distribution among Farmers: A Whole-Household, Multi-Country, Multi-Year Analysis," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin, Agricultural and Applied Economics Association 49314, Agricultural and Applied Economics Association.
  12. Bergh, Andreas & Nilsson, Therese, 2009. "Good for living? On the relation between globalization and life expectancy," Working Papers, Lund University, Department of Economics 2009:9, Lund University, Department of Economics.
  13. Michael Tribe & Andrew Sumner, 2006. "Development economics at a crossroads? Introduction to a policy arena," Journal of International Development, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 18(7), pages 957-966.

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