Trade liberalization has a positive impact on poverty reduction in Latin America, contrary to the notion that market integration is harmful to the poor, a new book published by the Inter-American Development Bank reveals.
The study provides empirical evidence measuring the impact of trade liberalization on income distribution and poverty, revealing a positive relationship. It, however, rebukes the idea that trade is a panacea for development. The book provides several recommendations highlighting the long-term effect of trade, the importance of non-trade policies and government support, and the tailoring of market strategies to the country’s unique situation.
The publication is financed by the Trade and Poverty Trust Fund of the U.K. Department for International Development.