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Teaching Material on Trade and Poverty

Table of contents

Overview


MODULE 1 - APPROACHES TO THE TRADE AND POVERTY DEBATE, CONCEPTS AND DEFINITIONS

In this introductory module, we will first look at the recent trade and poverty experiences of three very different countries in order to stimulate your thinking and raise key questions concerning the analysis of trade and poverty. You will then learn about different concepts of trade and poverty, more narrow ones focussing on trade liberalization, more holistic ones including a broad range of related topics, such as employment or the organisation of production chains. A more holistic view on the link between trade and poverty includes also the domestic determinants of trade and poverty, and domestic productive capacities play an important role in this respect. We will then work through the various concepts, definitions and measurements of trade, on the one hand, and poverty, on the other hand, which are used in research and policy-making. In this context we will also discuss the policy implications of methodological choices. The section on concepts of poverty, indicators and measures is relatively comprehensive, and could therefore well be used as independent input in the context of a course dealing with poverty.


MODULE 2: DOES TRADE INCREASE GROWTH AND DOES GROWTH REDUCE POVERTY? 

In this module, we will first examine the conceptual underpinnings of the links between trade, trade liberalization and economic growth. These are mainly based on classical, neoclassical and new theories of international trade and on growth theory. Especially the endogenous growth theory developed in the 1990s has given a new push and direction to the research on this topic.
The theoretical predictions will be contrasted with empirical findings. In addition, you will learn about a range of methodological problems often present in the empirical analysis of the relationship, in particular the flaws of cross-section models often used to test theoretical predictions. There will be space for a critical discussion of the models, with the objective to make you aware of their limitations.
We will then examine the growth-poverty relationship and try to define what pro-poor growth actually means. You will see that researchers have not agreed on one single definition so far, and therefore one has always to examine first what pro-poor growth means in a specific paper to be able to interpret and compare research results. This section will also introduce you to the theoretical linkages between growth, inequality and poverty, and you will get to know the main directions on the respective linkages in the empirical research. It will be particularly important to understand the role inequality can play - its direct influence on growth as well as its influence on the way in which growth reduces poverty. We also familiarize you with the notion of a "poverty trap", a situation where poverty itself acts as a constraint on economic growth and poverty reduction.

 


MODULE 3: LOOKING AT THE DETAILS: WHEN IS TRADE PRO-POOR, WHEN ANTI-POOR? CONCEPTS, EVIDENCE AND RESEARCH METHODOLOGIES

This module will provide you with examples of research that capture in more detail how the trade-poverty relationship works and that allow for heterogeneity at the various levels. The suggested readings and the list of references complement the research papers and publications examined in the following sections. Despite the research perspective, the module content is also relevant to "users" of research since (i) knowledge about conceptual issues is imparted and (ii) readers must be able to interpret research findings in the context of data and methodology used.

Annex  

 


MODULE 4: OPEN DEVELOPMENT STRATEGIES AND POLICY IMPLICATIONS

This module will provide you with some useful tools to place concepts and empirical research results into a policy context. In addition, it will provide some recommendations on how to generate links between researchers and policy-makers and how to communicate your research findings. In this context we will look at some tips on how to draft policy briefs. The structure of the module therefore goes from the abstract, in its discussion of development strategies, to the concrete, in its description of specific policies and their implementation.

 


Vi Member Localizations:

University of Mauritius (2008)

Université de Yaoundé II (2014)

 

 

 

 

 

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