In sum, their research showed that trade liberalization had a generally positive effect in stimulating economic growth and that growth often had the effect of reducing overall poverty. ... Trade liberalization policies should also be coupled with training and other policies to help the poor move to expanding sectors.
How does trade liberalization help the poor?
Offers a comprehensive set of complementary policies and economy-wide approaches to enable trade to help reduce poverty and inequality by minimizing distortions and strengthening the functioning of markets, lowering trade costs, and speeding up labor market adjustment.
How does trade affect poverty?
According to his research, a 1 percentage point increase in trade is associated with a 0.149 percent decline in poverty. ... The logic is simple: trade causes growth; growth raises income. And, importantly, as income rises, poverty generally drops. The avenues by which trade reduces poverty can be static or dynamic.