The Impact of Trade Liberalization on Poverty: A Theoretical and Empirical Investigation

There have been different views regarding the impact of globalization on growth and Poverty reduction. In this Paper with the help of witners model, we have studied the impact of changes in prices and income distribution resulting from trade liberalization the result show that globalization and trade openness have different impact depending on circumstances. Regarding the Case of Iran, in our Study, Trade openness did not have significant impact on income distribution, poverty reduction and or employment generation.