Does Trade Contribute to Poverty Reduction? If It Does, Where the Benefit Go?

Journal of International Trade & Commerce, Vol.14, No.2, pp.163-178 (2018)

16 Pages Posted: 11 Jan 2019

See all articles by Sae-Ra Oh

Sae-Ra Oh

Korea Rural Economic Institute

Sang-Hyeon Lee

Kangwon National University - Department of Agricultural and Resource Economics

Date Written: April 23, 2018

Abstract

World trade volume has been greatly increasing with the active flow of trade liberalization, and the role of international trade in world economy became more substantial. Considering the importance of trade in one’s economy it is necessary to think about whether the benefit is proportionally distributed. Many empirical studies attempted to identify the trade and poverty interaction, however, the linkage between trade and poverty reduction is a controversial topic. This study aims to assess the effect of trade on the increase and decrease of poverty and find whether there are differences by region (rural and urban) and continent (Asia and Central and South America).

The results indicate that:

1) an increase in export share contributes to national and urban poverty reduction, but the effect of exports on the rural poverty is vague;

2) an increase in import share is found to be beneficial for poverty reduction in Central and South America, but the opposite in Asian countries.

Keywords: Developing Country, Poverty Reduction, Rural Poverty, Trade, Urban Poverty

JEL Classification: F69, I32

Suggested Citation

Oh, Sae-Ra and Lee, Sang-Hyeon, Does Trade Contribute to Poverty Reduction? If It Does, Where the Benefit Go? (April 23, 2018). Journal of International Trade & Commerce, Vol.14, No.2, pp.163-178 (2018), Available at SSRN: https://ssrn.com/abstract=3308913

Sae-Ra Oh (Contact Author)

Korea Rural Economic Institute ( email )

Korea, Republic of (South Korea)

Sang-Hyeon Lee

Kangwon National University - Department of Agricultural and Resource Economics ( email )

Korea, Republic of (South Korea)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
25
Abstract Views
196
PlumX Metrics