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Basanta K Pradhan and Malvika Mahesh
''Impact of trade openness on poverty: a panel data analysis of a set of developing countries''
( 2014, Vol. 34 No.4 )
The impact of trade openness on poverty has been in the limelight for a few decades now, since most developing countries relaxed their trade regimes. Poverty has always been a central issue for developing countries mainly because of their large vulnerable populations. In this paper, a panel of 25 developing countries is analyzed for three years to determine the effects of trade openness on poverty. We find that poverty has a negative and significant relationship with total trade, imports, exports and merchandise trade. The human capital (education) has negative impact on poverty. We also find that infrastructure and health have a positive impact on per capita GDP. This paper supports the view that an inward-oriented trade policy is neither good for growth nor for poverty.
Keywords: Poverty, Trade, Openness, GDP
JEL: I3 - Welfare and Poverty: General
F1 - Trade: General
Manuscript Received : Jul 04 2014 Manuscript Accepted : Oct 24 2014

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