Economic Integration, Growth, and Poverty

Jul 2007
A paper commissioned by the IDB sees trade openness to generate economic growth and help reduce poverty. The study, written by aColumbia University economics professor Xavier Sala-i-Martin, takes a close look at the impact of regional trade agreements, finding benefits to outweigh the potential short-run increases in inequality. Buoyant as it is about the benefits of free trade, the paper includes warnings for policymakers.