Trade Liberalization Widens Income Gap, Hurts Rural Farmers in Ghana
The article studies how opening up trade in Ghana impacts how money is spread among different groups. Using a model, the researchers looked at data from 2013 to see the effects on household incomes based on where people live and what they do for a living. The findings show that when trade is made easier, rural farmers in Ghana earn less money and spend less, while city workers gain. By reducing import taxes, people buy more from abroad, hurting local farmers' earnings and reducing the need for local workers and land for farming.