Publication Type

Book Chapter

Version

submittedVersion

Publication Date

4-2008

Abstract

Trade liberalization is good for growth, and growth is good for the poor. This argument is simple but powerful. It has served as the departure point for discussion of the link between trade and poverty among economists and policy-makers, regardless of whether and to what extent they buy this argument. Krueger (1998) considers the inefficiencies that import substitution strategy creates and argues that trade liberalization undertaken at a period of low or negative growth rates can normally lead to a period of higher growth rates. Bhagwati and Srinivasan (2002) emphasize the empirical evidence of China and India. That is, these two giant economies achieved faster growth and poverty reduction through greater integration into the world economy. Dollar and Kraay (2002, 2004) use cross country regression to support this argument.

Keywords

Trade liberalization, microsimulation, computable general equilibrium, small-area estimation, Vietnam

Discipline

Asian Studies | International Economics

Research Areas

Applied Microeconomics

Publication

Globalization and the Poor in Asia: Can Shared Growth Be Sustained?

First Page

47

Last Page

89

ISBN

9780230201880

Identifier

10.1057/9780230594005_3

Publisher

Palgrave Macmillan

City or Country

London

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1057/9780230594005_3

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