An Impact of Internal Trade Sector of the Economy on Poverty in the Kyrgyz Republic

Abstract

It has been shown in various researches that the higher economic growth reduces poverty. These results suggest that the sectoral composition of growth may be another issue to investigate. This article explores the relationship between the growth in the trade sector and poverty. It uses available data on the general poverty incidence in the Kyrgyz Republic from 2000 to 2006 in the aggregate and headcounts measures of poverty and the trade sector. The methodology proposed is applied to the data taken from the National Statistical Committee publications. Аn impact of the trade sector development on poverty reduction is established. The article is concluded by proposed policy implications.