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Looking Beyond Averages in the Trade and Poverty Debate

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  • Ravallion, Martin

Abstract

There has been much debate about how much poor people in developing countries gain from trade openness, as one aspect of"globalization."The author 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 modeling of the impacts of specific tradereforms. The author presents case studies for China and Morocco. Both the macro and micro approaches cast doubt on some wide 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. The author identifies a number of covariates of the individual gains. The results point to the importance of combining trade reforms with well-designed social protection policies.

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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2005/29.

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Length: 30 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:unu:wpaper:rp2005-29

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

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References

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  1. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
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Citations

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Cited by:
  1. Prema-Chandra Athukorala, 2011. "Trade Liberalisation and The Poverty of Nations: A Review Article," Journal of Development Studies, Taylor & Francis Journals, vol. 47(3), pages 533-543.
  2. Zhang, Yin & Wan, Guanghua, 2006. "Globalization and the Urban Poor in China," Working Paper Series RP2006/42, World Institute for Development Economic Research (UNU-WIDER).
  3. Ann Harrison, 2007. "Globalization and Poverty," NBER Books, National Bureau of Economic Research, Inc, number harr06-1, October.
  4. Margaret S. McMillan & Alix Peterson Zwane & Nava Ashraf, 2007. "My Policies or Yours: Does OECD Support for Agriculture Increase Poverty in Developing Countries?," NBER Chapters, in: Globalization and Poverty, pages 183-240 National Bureau of Economic Research, Inc.
  5. Chris Papageorgiou & Subir Lall & Florence Jaumotte, 2008. "Rising Income Inequality," IMF Working Papers 08/185, International Monetary Fund.
  6. Arne Wiig, 2009. "Aid for trade: A misdirected initiative?," CMI Working Papers 4, CMI (Chr. Michelsen Institute), Bergen, Norway.
  7. Michael Tribe & Andrew Sumner, 2006. "Development economics at a crossroads? Introduction to a policy arena," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(7), pages 957-966.
  8. 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 4642, The World Bank.
  9. Bergh, Andreas & Nilsson, Therese, 2009. "Good for living? On the relation between globalization and life expectancy," Working Papers 2009:9, Lund University, Department of Economics.
  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, vol. 37(4), pages 825-838, April.
  11. Driouchi, Ahmed, 2009. "Failure of Participation & “Missing Women” in South Mediterranean Economies," MPRA Paper 21541, University Library of Munich, Germany, revised 22 Mar 2010.
  12. Liang, Zhicheng, 2006. "Threshold Estimation on the Globalization-Poverty Nexus: Evidence from China," Working Paper Series RP2006/57, World Institute for Development Economic Research (UNU-WIDER).
  13. 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 49314, Agricultural and Applied Economics Association.

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