Trade Liberalization Widens Nepal's Inequality, Hurts Rural Poor
The study looked at how trade opens up can impact poverty in Nepal. The researchers used a special computer model to see the effects on different types of households in the country. They found that when trade barriers were reduced, poverty in cities went down, but poverty in rural areas increased. This happened because at the start, taxes on farming products were highest. The changes in poverty were also more noticeable among richer people, making the gap between high and low incomes wider.