Regional integration and poverty

This brief assesses the relationship between regional integration and poverty reduction. It points out that regional integration can affect poverty at the country level in a number of ways:

• through the volume (e.g. effects on allocative or dynamic efficiency) and poverty focus (e.g. if regional exports are produced relatively more by the poor, or if regional imports benefit poor consumers relatively more) of trade
• through the volume and poverty focus of investment
• through the volume and poverty focus of migration
• through other routes (regional social and infrastructure programmes, or effective representation of poor people in regional trade negotiations).

The brief remains cautious about the first three ways in which poverty could be affected (trade, investment and migration ). Yet , it argues that there might be important effects in the fourth route. In this sense, the type and scope of the regional integration process may matter a lot for poverty reduction.