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Trading Out of Poverty: Some Major Issues
; Department of Economics, The University of Auckland, New Zeland
What are the ways in which trade (trade liberalisation) may have impact on poverty? This paper looks at some of the findings of the analytical literature on trade-poverty linkages that operate through the impact of trade on income distribution, and through the impact of trade on economic growth. This paper further asks the question whether trade effects on poverty depend on a particular type of trade liberalisation. In particular, it exposes the weaknesses of non-reciprocal trade liberalisation. The trading preferences granted by the European Union (EU) to Pacific Island Countries (PICs) and their poverty-reducing potential are briefly examined at the end.
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