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Abstract

The paper analyse the impact of market reforms on poverty in Bangladesh. To estimate the poverty impact at household level, a binary logit model has been estimated with two latest waves of household income and expenditure data from Bangladesh. The results show that a significant improvement has been made in reducing poverty in the recent decades. As a net importing country, liberalization might has direct impact on household’s real income through the changes of real rice prices. The results also show that net rice buyer households are poorer than net rice sellers. So, decreased rice prices in domestic markets induced by liberalization have benefited the net rice buyers in Bangladesh, hence poverty declines.

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