Industrialization, trade policy and poverty reduction: evidence from Asia [unknown]

Peter Warr
Trade Policy Reforms and Development   unpublished
Over recent decades, most of the developing economies of Asia achieved reductions m absolute poverty incidence, but these reductions varied peafly in sizc. Differences in the rate of aggregate economic growth explain pan. but not aU of these differences. One factor that wuld be imponant is the seaoral composition of the growlh. This paper examines the relationship between poverty reduction outcomes and the rate of @wth in the agricultwal, indusfrial and services sectors. It assembles available
more » ... ssembles available data on the headcount mcasm of poverty incidence in East Asia (Taiwan). Southeast Asia (Thailand, Indonesia, Malaysia and the Philippines) and South Asia (India), from the 1960s to the 1990s. It then uses these data to analyze the cwnomic dereminanb of changes in poverty incidence. It is concluded that growth of a&cultun and services consistently contribute to poverty reduction but that the contribution of industrial growth crucially depends on the trade policy environment in which the growth occurs. IEL Classification: 015, D31 ' Papa for a Fenrchrill in honour olProfernor FeQr Lloyd. University of Meil~aurnr. 23-24 J a n w . 2003 Exccllmt rrrcsrch asirtance [mm Chm Yuyu and helpful dlssurrionr wiIh Pmmn-chendm Alhukorola and Raghahdni lha are galcfuliy scbowledged The oulbor is responsible for nU derrcw.
doi:10.4337/9781845425654.00019 fatcat:645wil6t5vhjla7bpo75z4wkda