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
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2020-14

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