Abstract:

The aim of this study is to investigate the effect of trade liberalization and financial development on the level of poverty. For this purpose, empirical applications have been made for the New Industrializing Countries with the data covering the years 1985-2020. In the study, CADF unit root test, ECM cointegration test, CCE coefficient estimator and Dumitrescu-Hurlin (2012) panel causality tests were used. In the model, the ratios of household final consumption expenditures, loans given to the private sector by banks, exports and imports to GDP, and economic growth indicators are used. According to the results obtained, it was concluded that imports reduce poverty, but financial development, exports and economic growth affect poverty negatively. According to the panel causality results, bidirectional causality was obtained between exports and imports with poverty. Unidirectional causality was obtained from poverty to economic growth and financial development.

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