When do trade reforms imply larger poverty reductions?

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Economics from the NOVA – School of Business and Economics

I study the group of countries who conducted the largest tariff reductions of the late 1980’s to analyse the relationship between trade reforms and different poverty reductions. I find that countries with larger reductions in poverty are associated with higher labour to land ratio, lower capital to labour ratio, negative trade balance and better legal systems. I find that W.T.O. participation is not relevant to poverty reductions. I also find that changes in exports good’s prices can affect the countries poverty. Econometric analysis although supporting the coefficients signs fails to provide significant results.