When does trade reduce poverty? Revisiting the evidence for East Asia

Jayant Menon () and Anna Cassandra Melendez

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: East Asia s openness to trade is often credited as one of the main drivers behind the region s impressive gains in economic growth and poverty reduction. In this paper, we examine the literature to determine whether there is a sound theoretical and empirical basis for this presumed relationship between trade and poverty reduction. Like many other studies on this topic, we find that the linkages are not automatic; the impact of trade on poverty is highly context-specific, and many factors come into play. Complementary policies are necessary to maximise trade s potential impact on poverty reduction. We also explore the role of Aid-forTrade in addressing specific trade-related capacity constraints which prevent developing countries from maximising the benefits from trade.

Keywords: east Asia; trade; poverty; aid for trade (search for similar items in EconPapers)
JEL-codes: C12 C51 D31 D63 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2020-14

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