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Trade among Similar Countries and the Personal Distribution of Income and Wealth

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  • Satya P. Das

Abstract

The link between trade among similar countries and personal distribution of income and wealth is explored, with heterogeneous savings rates among households (dynasties) being the source of inequality. The real effect of trade occurs through greater oligopolistic competition and scale economies. The distribution of capital, and hence income distribution, are affected via changes in factor rewards and the price of capital as a tradeable asset.

Suggested Citation

  • Satya P. Das, 2000. "Trade among Similar Countries and the Personal Distribution of Income and Wealth," Economica, London School of Economics and Political Science, vol. 67(266), pages 265-281, May.
    • Handle: RePEc:bla:econom:v:67:y:2000:i:266:p:265-281
    DOI: 10.1111/1468-0335.00207
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