A Survey of Findings on the Poverty Impacts of Agricultural Trade Liberalization
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The purpose of this survey is to review the available empirical evidence on the
impacts of agricultural trade liberalization on poverty – considering both the impact of
domestic and international liberalization. Since trade liberalization is generally an economywide
phenomenon, with tariff cuts occurring across a wide range of commodities, we do not
restrict ourselves to episodes where only agricultural trade was liberalized, although
emphasis in this survey is given to agricultural trade policies. Furthermore, given the
difficulty of isolating the effects of trade policies alone, we will also consider the impact of
other types of external shocks which have the effect of changing the relative prices of
tradeable and non-tradeable goods. By examining the way in which households adjust to such
external shocks, we can learn a great deal about how they would respond to sharp reductions
in tariffs, or significant changes in a country’s international terms of trade engendered by
multilateral trade liberalization.