Trade, Poverty Eradication, and the Sustainable Development Goals

24 Pages Posted: 5 Jan 2017

See all articles by Irene Brambilla

Irene Brambilla

Universidad Nacional de La Plata

Guido G. Porto

Universidad Nacional de La Plata - Faculty of Economics

Date Written: December 30, 2016

Abstract

This paper investigates if trade can help achieve the United Nations Sustainable Development Goal of poverty eradication using microeconomic and macroeconomic mechanisms and the effects of trade and trade policy on consumer prices, producer prices, and wages. As these mechanisms affect the real income of households, they determine the likelihood that a household may be lifted out of or pushed into poverty. The impacts of trade on growth and longer-term consequences of trade liberalization were also analyzed using data from African countries. While there is sound evidence that trade can be pro-poor, there is significant heterogeneity in the poverty impacts of trade, both across households and countries. This highlights the importance of complementary policies such as infrastructure, trade facilitation, and social protection.

Keywords: Trade, Trade Liberalization, Trade Policy, Poverty, Poverty Eradication, United Nations Sustainable Development Goals

JEL Classification: F14, F16, O24

Suggested Citation

Brambilla, Irene and Porto, Guido G., Trade, Poverty Eradication, and the Sustainable Development Goals (December 30, 2016). ADBI Working Paper No. 629, Available at SSRN: https://ssrn.com/abstract=2893421 or http://dx.doi.org/10.2139/ssrn.2893421

Irene Brambilla (Contact Author)

Universidad Nacional de La Plata ( email )

La Plata, Buenos Aires 1900
Argentina

Guido G. Porto

Universidad Nacional de La Plata - Faculty of Economics ( email )

1900 La Plata
Argentina

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