• Manisha Dhingra
• Kanika Arora

It is commonly believed that trade openness leads to economic growth, little is known about its effect on poverty. Studies reveal the ambiguous relationship between trade and poverty (UNCTAD, 2004). Beneficial effects of trade openness are larger in states with more flexible labour institutional setup, developed financial institutions and better transportation which leads to poverty reduction (Hasan et al., 2010). The effect of trade on poverty goes through various channels like economic growth, education, health, labour productivity and employment. This paper makes an attempt to establish relationship between poverty and trade with special reference to consumer, capital and manufactured goods. The regression analysis indicates that trade of consumer goods has a positive and significant relationship with poverty. The relationship between the trade of manufactured goods and capital goods vis-a-vis poverty is found to be negative. Considering the gap between trade and poverty various measures has been suggested like enabling of the conducive environment to facilitate trade, providing platform for trade and the increasing role of government by bringing schemes to encourage more exports.

Trade, poverty, capital goods, consumer goods, manufactured goods, economic growth.

"A sectoral relationship between Trade and Poverty: A study with special reference to consumer, capital and manufactured goods", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 1, page no.777-784, January-2019, Available :http://www.jetir.org/papers/JETIR1901200.pdf

"A sectoral relationship between Trade and Poverty: A study with special reference to consumer, capital and manufactured goods", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 1, page no. pp777-784, January-2019, Available at : http://www.jetir.org/papers/JETIR1901200.pdf