Developing Countries Poised to Reap Massive Gains from Global Trade Reform
The article examines how global merchandise trade reform would impact developing countries, focusing on the distribution of benefits, especially in agriculture. By using the latest global economic models, the researchers found that moving towards free trade would increase real incomes in Sub-Saharan Africa more than in other regions, even though some parts might face trade challenges. Implementing partial trade liberalization, particularly lowering tariffs on agricultural imports, could help boost farm incomes in developing countries and reduce rural poverty. The study suggests that developing countries stand to gain the most from trade reforms, especially in agriculture, improving overall economic well-being.