ABSTRACT
This chapter aims to develop a framework to identify and assess the various ways in which regional trade agreements (RTA) can affect poverty, in particular the effects that operate via the volume of trade and investment. It provides the links from RTAs to poverty impacts. The chapter considers the effects of regional integration (RI) on trade, investment and migration, there could be effects on the connections between these, which may ultimately affect poverty. It outlines the three basic ways in which RTAs can have effects on poverty – through the level of activity, prices and the share of the poor in economic activity. The chapter presents a number of potential links what the expected effects of RI are on poverty, and a conceptual framework for mapping the effects of RTAs on the poor and poverty reduction. One important link with poverty is the ‘price’ effects of an RTA. Trade policy liberalization can lead to lower prices, which will benefit consumers.
