Premium
Trade Policy and Poverty In the United States: Theory and Evidence, 1947‐1990 *
Author(s) -
Batra Ravi,
Slottje Daniel J.
Publication year - 1993
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.1993.tb00016.x
Subject(s) - economics , unemployment , poverty , free trade , productivity , general equilibrium theory , government (linguistics) , poverty rate , liberalization , commercial policy , development economics , macroeconomics , international economics , labour economics , economic growth , market economy , linguistics , philosophy
This paper develops a two‐sector general equilibrium model to examine the impact of technical progress, factor accumulation, labor growth, unemployment, trade policy, and the government's antipoverty programs on the rate of poverty. the results are then tested empirically using the data regarding the United States. We find that low unemployment, productivity growth, and government transfers have the expected effects of alleviating poverty; but trade liberalization has the unexpected effect of being associated with a major increase in poverty‐a result contradicting traditional views.