Trade, Growth, and Poverty

28 Pages Posted: 6 Oct 2004

See all articles by David Dollar

David Dollar

World Bank - Development Economics Group (DEC)

Aart Kraay

World Bank - Development Research Group (DECRG)

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Abstract

A key issue today is the effect of globalisation on inequality and poverty. Well over half the developing world lives in globalising economies that have seen large increases in trade and significant declines in tariffs. They are catching up the rich countries while the rest of the developing world is falling farther behind. Second, we examine the effects on the poor. The increase in growth rates leads on average to proportionate increases in incomes of the poor. The evidence from individual cases and cross-country analysis supports the view that globalisation leads to faster growth and poverty reduction in poor countries.

Suggested Citation

Dollar, David and Kraay, Aart, Trade, Growth, and Poverty. Economic Journal, Vol. 114, pp. F22-F49, February 2004. Available at SSRN: https://ssrn.com/abstract=513475

David Dollar

World Bank - Development Economics Group (DEC) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Aart Kraay (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-5756 (Phone)
202-522-3518 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/akraay

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