Abstract
This article reviews the relationship between trade and poverty, with specific focus on this link in developing countries. Since the 1980s, our understanding of the link between trade and poverty has been increasingly informed by empirical evidence. We first review the literature that emphasizes the dynamic effects of trade on poverty via growth. We next consider the literature on the static relationship between trade and poverty through changes in relative prices of goods and wages of the less educated. We conclude with a discussion of trade and child labour.
This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume
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Pavcnik, N. (2008). Trade and Poverty. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_1946-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_1946-1
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Publisher Name: Palgrave Macmillan, London
Online ISBN: 978-1-349-95121-5
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