Free Trade Deal Boosts Incomes for Nicaragua's Poor
The paper looks at how a trade agreement affects poverty in Nicaragua before it happens. The researchers use a big picture model to predict how trade changes might impact prices and a personal level model to see how it affects different families. They find that while the trade deal might not affect poverty on the whole too much, the changes will hit families differently based on what they have. This means they should think about different ways to help those impacted. They also discover that moving money around can be just as important as making more money altogether. The main idea is that Nicaragua should think about making deals with more countries, not just the U.S., to help reduce poverty caused by trade.