Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/330647 
Year of Publication: 
2025
Citation: 
[Journal:] The European Journal of Development Research [ISSN:] 1743-9728 [Volume:] 37 [Issue:] 5 [Publisher:] Palgrave Macmillan [Place:] London [Year:] 2025 [Pages:] 934-964
Publisher: 
Palgrave Macmillan, London
Abstract: 
This paper provides new evidence on the globalization‒poverty nexus by isolating the effects of the food sector on the prevalence of absolute poverty. Using panel regressions with fixed effects (FE) and Generalized Method of Moment (GMM) estimators for a panel of 12 Latin American countries from 1995 to 2020, we find that increased food trade significantly increases absolute poverty in our sample. Extended analysis suggests that this effect operates primarily through food exports. Using a recently collected indicator of globalization in the food sector, our estimates indicate that the opening of food markets since the mid-1990s may have accounted for approximately two additional percentage points of the population living below the absolute poverty line of $2.15 a day. Our results highlight that, despite its modest share of total trade, food sector globalization should be accompanied by policy measures aimed at mitigating potential poverty traps associated with structural transformations following increased food exports.
Subjects: 
Trade policy
Empirical studies of trade
Economic impacts of globalization
Agriculture in international trade
Food policy
JEL: 
F13
F14
F60
Q17
Q18
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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