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Trade, Income Distribution And Poverty In Developing Countries: A Survey

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  • Amelia U. Santos-Paulino

Abstract

The paper surveys the theoretical and empirical research on how trade and trade liberalization affect poverty and income distribution. The impact of globalization on poverty reduction has been uneven but the findings in the literature are sensitive to modelling choices. Trade liberalization improves aggregate welfare but the gains are small and unequally distributed. The welfare effects are measured basically through price changes, focusing on the effect on the relative demand for domestic factors of production and, in particular, the demand for skilled relative to unskilled labour. The literature shows that poverty constraints originate from various sources including infrastructure, skills, incomplete markets, and policy.

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Bibliographic Info

Paper provided by United Nations Conference on Trade and Development in its series UNCTAD Discussion Papers with number 207.

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Date of creation: 2012
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Handle: RePEc:unc:dispap:207

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  1. Peter H. Lindert & Jeffrey G. Williamson, 2001. "Does Globalization Make the World More Unequal?," NBER Working Papers 8228, National Bureau of Economic Research, Inc.
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  15. Michael Geiger, 2008. "Instruments Of Monetary Policy In China And Their Effectiveness: 1994–2006," UNCTAD Discussion Papers 187, United Nations Conference on Trade and Development.
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  17. Robert Rowthorn & Ken Coutts, 2004. "De-industrialisation and the balance of payments in advanced economies," Cambridge Journal of Economics, Oxford University Press, vol. 28(5), pages 767-790, September.
  18. Alberto Gabriele, 2004. "Policy Alternatives In Reforming Power Utilities In Developing Countries: A Critical Survey," UNCTAD Discussion Papers 168, United Nations Conference on Trade and Development.
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