Does Trade Reduce Poverty? A View from Africa

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

The Relationship of Indonesia’s Poverty Rate Based on Economic Growth, Health, and Education

“…Economic growth (GR) in this study positively and not significantly affect the level of poverty in Indonesia. Results have taken with the research conducted by (Aria & Nenik;Stephanie, 2017;Goff and Singh, 2014;Pradeep, 2008) Areas so that in each region it becomes faster in reducing poverty levels. The different results of the research conducted by (Andri, 2018;and Anggit and Fitri, 2012) in which they found economic growth had a negative and significant relationship to poverty.…”

Financial Channels, Property Rights, and Poverty: A Sub-Saharan African Perspective

“…Some poor may be in sectors loosing from higher trade openness (importsubstitution sectors), while others are in the sectors benefiting from trade reforms (export-oriented sectors). In addition, Winters et al (2004) and more recently Le Goff and Singh (2014) argue that the impact of trade liberalization on poverty depends on country context and accompanying policies, which may be not appropriately captured in cross-country or panel regressions.…”

International Capital Movement: Trends and Prospects

“…These include measures to encourage savings and investment in human and physical capital, as well as reforms to improve governance and alleviate intra-national frictions associated with market imperfections and transport costs (Bartley Johns et al 2015). Without these accompanying policies, increased trade openness might have an adverse impact on poverty and inequality (World Bank 2015b; Le Goff and Singh 2013). This suggests the need for a multi-pronged agenda to pair trade liberalization with improved human capital development and institutional reforms to ensure that the gains from increased trade contribute effectively to poverty reduction and the promotion of shared prosperity.…”