Can Trade Help Poor People? The Role of Trade, Trade Policy and Market Access in Tanzania
Many development economists prescribe trade as a poverty-reducing formula. But how is this elixir supposed to work? This article contributes to the lively debate on this topic with household evidence from Tanzania - a poor country even within sub-Saharan Africa, the poorest region. About 81% of the poor work in agriculture, which accounts for 88% of the export bundle. The article describes existing poverty and then evaluates the poverty-reduction potential of trade, trade policy and market access. The article extends the analysis by simulating tariff changes and four switching scenarios that swap some poor households into trade-related sectors, such as cash cropping or tourism, to project national poverty reductions of up to 5.6% and household income increases of up to 21.5%. Copyright 2007 Blackwell Publishing Ltd.
Year of publication: |
2007
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Authors: | Duygan, Burcu ; Bump, Jesse B. |
Published in: |
Development Policy Review. - Overseas Development Institute. - Vol. 25.2007, 3, p. 293-310
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Publisher: |
Overseas Development Institute |
Saved in:
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