The Role of International Trade in Poverty | Original Article

ABSTRACT:

There is a strong correlation between GINI indices in India and the country's trade openness and GDP per capita, unlike inflation rates, which do not. Trade openness and GDP per capita were shown to have substantial effects on the poverty gap in India but inflation rates had no effect on it when data was gathered from secondary sources using a multi-case study research technique and the conventional cross-country regression analysis model. The only statistically significant correlation between GDP Per Capita and poverty incidence is that of openness to trade and inflation rates. According to conventional wisdom, more exports lead to an increase in GDP, although this is not always the case. There is also evidence of this theoretical uncertainty in the empirical literature examined. This research explores how changes in India's export performance affect poverty rates in order to clear up this uncertainty. A broad variety of macroeconomic factors are analyzed in order to determine the influence of foreign trade on poverty reduction in India.