leads to faster growth and poverty reduction in poor countries. To determine the effect of globalization on growth, poverty … translates on average into proportionate increases in incomes of the poor. Absolute poverty in the globalizing developing … the view that globalization leads to faster growth and poverty reduction in poor countries. This paper—a product of …

"The authors examine the empirical evidence in support of the poverty trap view of underdevelopment. They calibrate … simple aggregate growth models in which poverty traps can arise due to either low saving or low technology at low levels of … development. They then use these models to assess the empirical relevance of poverty traps and their consequences for policy. The …