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The Impact of Trade on Inequality in Developing Countries

Nina Pavcnik

No 12331, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper assesses the current state of evidence on how international trade shapes inequality and poverty through its influence on earnings and employment opportunities. While the focus is mainly on developing countries, in part because we have more evidence in that context, the discussion draws parallels to the empirical evidence from developed countries. The paper also discusses perceptions about international trade in over 40 countries at different levels of development, including perceptions on trade's overall benefits for the economy, trade's effect on the livelihood of workers through wages and jobs, and trade's contribution to inequality. The paper concludes with a survey of evidence on several policies that could mitigate the adverse effects of import competition.

Keywords: inequality; Informality; Local Labor Markets; poverty; trade policy (search for similar items in EconPapers)
JEL-codes: F10 F13 F14 F16 J2 J46 O17 O24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-lma
Date: 2017-09
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