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Trade, Growth, Poverty Reduction and Human Development: Some Linkages and Policy Implications (Draft)

By Kamal Malhotra | March 1, 2004

From the Intro: Conventional wisdom holds that the link between trade, poverty reduction and human development is through economic growth. Trade can be a powerful source of economic growth and trade liberalization is the common policy prescription for increasing trade flows. The voluminous literature on the positive relationship between trade liberalization and economic growth forms the basis for often-heard claims about the benefits of trade openness. But that literature is far from unequivocal. There is no convincing evidence that trade liberalization is automatically or always associated with economic growth, let alone poverty reduction or human development.

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