Reimer, Jeffrey J.2013-09-042013-09-042002-02https://hdl.handle.net/10986/15611As a new round of World Trade Organization negotiations is being launched with greater emphasis on developing country participation, a body of literature is emerging which quantifies how international trade affects the poor in developing countries. In this survey of the literature, the author summarizes and classifies 35 trade and poverty studies into four methodological categories; cross-country regression, partial-equilibrium and cost-of-living analysis, general-equilibrium simulation, and micro-macro synthesis. These categories include a broad range of methodologies in current use. The continuum of approaches is bounded on one end by econometric analysis of household expenditure data, which is the traditional domain of poverty specialists, and sometimes labeled the "bottoms-up" approach. On the other end of the continuum are computable general equilibrium models based on national accounts data, or what might be called the "top-down" approach. Another feature of several recent trade and poverty studies--and one of the primary conclusions to emerge from the October 2000 "Conference on Poverty and the International Economy," sponsored by Globkom and the World Bank--is the recognition that factor markets are perhaps the most important link between trade and poverty, since households tend to be much more specialized in income than they are in consumption. Meanwhile, survet data on the income sources of developing country households has become increasingly available. As a result, this survey gives particular emphasis to the means by which studies address factor market links between trade and poverty. The general conclusion of the author's survey is that any analysis of trade and poverty needs to be informed by both the bottom-up and top-down perspectives. Indeed, recent "two-step" micro-macro studies sequentially link these two types of frameworks, such that general equilibrium mechanisms are incorporated along with detailed household survey information. Another methodology in a similar spirit and also increasingly used involves incorporating large numbers of surveyed households into a general-equilibrium simulation model. Although most of these studies have so far been limited to a single region, these approaches can be readily adapted for multi-region modeling so that trade and poverty comparisons can be made across countries within a consistent framework.en-USCC BY 3.0 IGOTRADE LIBERALIZATIONINTERNATIONAL TRADELITERATURE SURVEYSCROSS-COUNTRY EXPERIENCEREGRESSION ANALYSISCOST OF LIVINGECONOMETRIC MODELS OF POVERTYHOUSEHOLD SURVEYSHOUSEHOLD EXPENDITURE SURVEYSGENERAL EQUILIBRIUM MODELSNATIONAL ACCOUNTSFACTOR MARKETSPOVERTY MEASUREMENTSURVEY DATAHOUSEHOLD INCOMEPOVERTY ANALYSIS ABSOLUTE POVERTYADJUSTMENT COSTADJUSTMENT COSTSADVERSE IMPACTAGGREGATE LEVELAGRICULTURAL ECONOMICSAGRICULTURAL SECTORAGRICULTURECASE STUDYCOMMODITIESCOMPARATIVE ADVANTAGECONSTANT ELASTICITYCONSUMERSCONSUMPTION DATACROSS- COUNTRY REGRESSIONCROSS-COUNTRY REGRESSIONDATA REQUIREMENTSDATA SETDATA SOURCESDEMAND CURVEDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING COUNTRY CONTEXTDISTRIBUTIONAL EFFECTSDIVIDENDSECONOMIC CHARACTERISTICSECONOMIC GROWTHECONOMIC SHOCKSECONOMIC STRUCTUREECONOMISTSEDUCATIONAL ATTAINMENTELASTICITYELASTICITY OF SUBSTITUTIONEMPIRICAL RESULTSEMPIRICAL STUDIESEMPLOYMENTENDOGENOUS VARIABLESEQUILIBRIUMEQUILIBRIUM ANALYSESEQUILIBRIUM VALUESEXOGENOUS SHOCKSEXPENDITURE DATAEXPENDITURE INFORMATIONEXTERNAL SHOCKSFACTOR INCOMEFINANCIAL CRISISFOREIGN EXCHANGEFREE TRADEFUNCTIONAL FORMGENERAL EQUILIBRIUM ANALYSISGENERAL EQUILIBRIUM MODELGLOBAL TRADEGROWTH RATESHOUSEHOLD BEHAVIORHOUSEHOLD INCOMEHOUSEHOLD LEVELHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHOUSEHOLDSINCOMEINCOME DISTRIBUTIONINCOME EFFECTINCOME HOUSEHOLDSINCOME INEQUALITYINCOME INFORMATIONINCOME LEVELINCOME LEVELSINCOME SHAREINCOME SOURCESINCOMESINDIVIDUAL LEVELINEQUALITY VARIABLESINFORMAL ACTIVITIESINFORMAL SECTORINFORMAL SECTORSINTERMEDIATE INPUTSINTERNATIONAL TRADELABOR DEMANDLABOR MARKETLABOR MARKETSLABOR SUPPLYLIVING STANDARDSLOW INCOMEMARKET LIBERALIZATIONMEASURING POVERTYMETHODOLOGICAL APPROACHESMULTIPLIERSNATIONAL LEVELNON-AGRICULTURAL ACTIVITIESPOLICY ANALYSISPOLICY OPTIONSPOLICY RESEARCHPOORPOOR HOUSEHOLDSPOSITIVE EFFECTPOVERTY ALLEVIATIONPOVERTY COMPARISONSPOVERTY INCREASESPOVERTY INDEXPOVERTY ISSUESPOVERTY LINEPOVERTY MEASURESPOVERTY REDUCTIONPRICE CHANGESPRODUCERSPRODUCTIVE ACTIVITYPRODUCTIVITYREAL WAGEREDISTRIBUTIVE EFFECTSREGRESSION ANALYSISREGRESSION APPROACHREGRESSION RESULTSRELATIVE IMPACTRELATIVE IMPORTANCERELATIVE INCOMERELATIVE PRICESRURALRURAL AREASRURAL HOUSEHOLDSRURAL POORSAVINGSSENSITIVITY ANALYSISSHARECROPPINGSTATISTICAL ANALYSISSUBSISTENCE FARMERSTERMS OF TRADETIME FRAMETRADE BALANCETRADE LIBERALIZATIONTRADE POLICIESTRADE TAXESURBANURBAN AREASURBAN ONESURBAN POORWAGE RATESWAGESWEALTHWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-2790