International Trade and Poverty Alleviation

34 Pages Posted: 18 May 2001

Date Written: May 2001


Empirical studies suggest that trade reform has a positive effect on employment and income for the poor; however, there are winners and losers. If the transitional costs of trade liberalization fall disproportionately on the poor, trade reform can be designed to mitigate these effects. This includes making reforms as broad based as possible, sequencing and phasing them to allow for adjustment, and implementing social safety nets and other reforms that facilitate adjustment to the new trade policy. In assessing these findings, it should be borne in mind that the links between trade reform and poverty are complex, making systematic empirical investigations difficult.

Keywords: WP, trade, liberalization, trade reform, poverty alleviation, trade reform fall, designed trade reform, trade volume, trade theory, price effects of a trade liberalization, impact of trade liberalization, trade rent, trade tax, benefits from trade liberalization, Trade liberalization, importance of trade liberalization, Income, Trade policy, Employment, Poverty reduction, Africa

JEL Classification: F13, I30, E25, E24, I38

Suggested Citation

Bannister, Geoffrey, International Trade and Poverty Alleviation (May 2001). Available at SSRN: or

Geoffrey Bannister (Contact Author)

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