The linkage between trade and poverty reduction is one of the controversial debate topics. Many studies were conducted and focused on national level poverty but this paper aims to investigate how the effect of trade differs in regional level (rural and urban) in developing countries. The result indicates that 1) an increase of export share contributes to national and urban poverty reduction in Asia and Central and South America but not the rural poverty; 2) an increase of import share is found to be beneficial for poverty reduction especially in Central and South America