There has been much debate about how much poor people in developing countries gain
from trade openness, as one aspect of ‘globalization’. The paper views the issue through
both ‘macro’ and ‘micro’ empirical lenses. The macro lens uses cross-country
comparisons and aggregate time series data; the micro lens uses household-level data
combined with structural modelling of the impacts of specific trade reforms. Case
studies are presented for China and Morocco. Both the macro and micro approaches cast
doubt on some widely heard generalizations from both sides of the globalization debate.
Additionally the micro lens indicates considerable heterogeneity in the welfare impacts
of trade openness, with both gainers and losers among the poor. A number of covariates
of the individual gains are identified. The results point to the importance of combining
trade reforms with well-designed social protection policies.