Trade Liberalization, Poverty and Inequality Nexus: A Case Study of India

Trade Liberalization, Poverty and Inequality Nexus: A Case Study of India


  • Journal title: Asian Economic and Financial Review
  • ISSN: 2305-2147 (print) 2222-6737 (online)
  • Publisher: Aess
  • Country of publisher: pakistan
  • Date added to EuroPub: 2017/May/11

Subject and more

  • LCC Subject Category: Finance and Financial Services, Economics
  • Publisher's keywords: India, Trade liberalization, Income distribution, Poverty
  • Language of fulltext: english
  • Full-text formats available: PDF
  • Time From Submission to Publication: 8


    Rana Ejaz Ali Khan| Associate Professor/Head Department of Management Sciences. COMSATS Institute of Information Technology. Sahiwal, Pakistan. E-mails: [email protected], Nadia Bashir| Ph.D. Scholar, Department of Economics. The Islamia University of Bahawalpur, Pakistan. E-mails: [email protected]


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The paper attempted to see the relationship between trade liberalization and poverty andinequality in India. For trade liberalization, volume of trade as ratio of GDP, head countratio for poverty and Gini-coefficient has been used for income inequality. The grangercausality technique is applied to time series data for the years 1970-2009. The resultsindicate that trade has no significant effect on poverty and poverty has no effect ontrade. However, trade has increased inequality in the short-run and inequality affectedthe trade in the long-run negatively. It partially contradicts the prediction of the Stolper-Samuelson theorem.

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