Macroeconomic models unlock path to poverty reduction through trade and finance reforms.
The article discusses how certain economic models can help understand the impact of trade and financial policies on reducing poverty. By using detailed production structures and labor market information, these models can show how trade liberalization can help decrease poverty. However, more work is needed to include financial aspects and expand export sectors for a more thorough analysis. A preliminary model is presented for this purpose, focusing on Asian economies like Bangladesh. This model can be adapted for other poor Asian countries to study the effects of economic policies on poverty levels.