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Trade Liberalization and Income Inequality in India: A Poisson Distributed-Lag Analysis

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  • Vertica AGARWAL
  • Jean H.P. PAELINCK
  • Kenneth A. REINERT
  • Roger R. STOUGH

Abstract

This paper addresses the relationship between trade liberalization and income inequality among Indian states using a Poisson distributed-lag analysis. Two measures of income inequality are considered: the Gini coefficient and the coefficient of variation. Trade liberalization is proxied using export growth. Results indicate that there is a different pattern of responses in inequality to export growth between rural and urban households. Rural inequality tends to be more responsive in the hoped-for direction than urban inequality.

Suggested Citation

  • Vertica AGARWAL & Jean H.P. PAELINCK & Kenneth A. REINERT & Roger R. STOUGH, 2008. "Trade Liberalization and Income Inequality in India: A Poisson Distributed-Lag Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(2), pages 187-192.
    • Handle: RePEc:eaa:aeinde:v:8:y:2008:i:2_15
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    References listed on IDEAS

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