International Trade and Poverty Alleviation

44 Pages Posted: 28 May 2001

See all articles by Geoffrey J. Bannister

Geoffrey J. Bannister

International Monetary Fund

Kamau Thugge

International Monetary Fund (IMF) - Policy Development and Review Department

Date Written: May 2001

Abstract

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: Trade reform, poverty alleviation

JEL Classification: F13, I30, O19

Suggested Citation

Bannister, Geoffrey J. and Thugge, Kamau, International Trade and Poverty Alleviation (May 2001). IMF Working Paper No. 01/54, Available at SSRN: https://ssrn.com/abstract=270440 or http://dx.doi.org/10.2139/ssrn.270440

Geoffrey J. Bannister (Contact Author)

International Monetary Fund ( email )

700 19th St. NW
Washington, DC 20431
United States
202-623-9421 (Phone)
202-623-4237 (Fax)

Kamau Thugge

International Monetary Fund (IMF) - Policy Development and Review Department ( email )

700 19th St. NW
Washington, DC 20431
United States

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