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Trade Liberalization and Poverty: An Indian Perspective

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  • N A Khan
  • Santanu Chowdhury

Abstract

This study examines the effect of trade liberalization on poverty in India through regression analysis by using data for the period from 1980-81 to 2007-08. In 1991, India adopted trade reform policy to overcome the balance of payment crisis and achieve a stable and sustainable development. After trade reform, the growth rate of output increased significantly, inflation rate declined, foreign exchange reserves rose substantially and there was a sharp reduction in poverty. This study analyzes the changing characteristics of national, rural and urban poverty measured in terms of Head Count Ratio (HCR) and absolute poverty. It also focuses on the per capita income generated from exports of products of various sectors as the driving force for poverty reduction at national and state level. It tries to build a linkage between export orientation of India and poverty.

Suggested Citation

  • N A Khan & Santanu Chowdhury, 2013. "Trade Liberalization and Poverty: An Indian Perspective," The IUP Journal of Applied Economics, IUP Publications, vol. 0(2), pages 62-77, April.
    • Handle: RePEc:icf:icfjae:v:12:y:2013:i:2:p:62-77
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