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Inequality, Economic Growth and Trade Openness: a Study Case for Central and Eastern Countries (ECE)

Author

Listed:
  • Olimpia Neagu

    (Universitatea de Vest „Vasile Goldi?” din Arad,)

  • Florin Dumiter

    (Universitatea de Vest „Vasile Goldi?” din Arad,)

  • Alexandra Braica

    (Universitatea de Vest „Vasile Goldi?” din Arad,)

Abstract

The paper analyzes the phenomenon of income inequality in ten countries from Eastern and Central Europe (ECE), by highlighting two aspects: (1) the link between growth and income inequality; (2) the effects of trade openess and other key factors on income inequality, such as: foreign direct investment (FDI), market capitalization and educational level of labour force. The method used was the Panel Data Analysis with statistical data from the period of 2000-2014. An increasing effect in income inequality was identified due to the trade openess, the inward stock of ISD and the market capitalization and an equalizing effect in the income distribution generated by the educational level of labour force. A positive association was also found between the growth of PIB per capita level and the increase of income inequality in the examined countries.

Suggested Citation

  • Olimpia Neagu & Florin Dumiter & Alexandra Braica, 2016. "Inequality, Economic Growth and Trade Openness: a Study Case for Central and Eastern Countries (ECE)," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(43), pages 557-557, August.
    • Handle: RePEc:aes:amfeco:v:43:y:2016:i:18:p:557
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    References listed on IDEAS

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    Cited by:

    1. BALTES Nicolae & JIMON Stefania Amalia, 2018. "Pension System In Reducing Poverty Risk In Romania," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 70(1), pages 114-127, August.
    2. Aurora A. C. Teixeira & Ana Sofia Loureiro, 2019. "FDI, income inequality and poverty: a time series analysis of Portugal, 1973–2016," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 18(3), pages 203-249, October.
    3. Marta de la Cuesta-González & Cristina Ruza & José M. Rodríguez-Fernández, 2020. "Rethinking the Income Inequality and Financial Development Nexus. A Study of Nine OECD Countries," Sustainability, MDPI, vol. 12(13), pages 1-18, July.
    4. Estefanía Mourelle & Juan Carlos Cuestas, 2022. "Investment dynamics in Central and Eastern Europe: Why doesn’t the sun always rise from the east?," Working Papers 2022/02, Economics Department, Universitat Jaume I, Castellón (Spain).
    5. Adriana AnaMaria Davidescu & Tamara Maria Nae & Margareta-Stela Florescu, 2022. "Exploring the Moderation and Mediation Effects in Addressing the Main Determinants of Income Inequalities in Supporting Quality of Life: Insights from CEE Countries," IJERPH, MDPI, vol. 19(14), pages 1-28, July.
    6. Mert Akyuz & Ghislain Nono Gueye & Cagin Karul, 2022. "Long-run dynamics between trade liberalization and income inequality in the European Union: a second generation approach," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(3), pages 769-792, August.
    7. Nicolae Balteș & Ștefania Amalia Jimon, 2019. "Social Inequalities and the Reform of Romanian Public Pension System by Law no. 127/2019," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 219-226, December.
    8. repec:blg:reveco:v:70:y:2018:i:3:p:8-21 is not listed on IDEAS
    9. Pop Mihai-Ionuț, 2020. "Scoring Model for the Detection of Fake News," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(1), pages 91-102, March.

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    More about this item

    Keywords

    inequality; trade; panel data; FDI; Eastern and Central Europe (ECE).;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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