Publication

This paper focuses on the relationship between various dimensions of economic freedom and poverty reduction. The authors argue that while there already exists a relatively large literature on poverty in developing countries, the relative quantitative significance of the various types of policies and the role of institutions has been neglected. In addressing this weakness, the authors find that openness to trade is robustly associated with poverty reduction, and identify a need for better and more defined indicators of labor market regulation in order to determine which type of regulations are having unintended and adverse consequences on poverty.