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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.

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Bibliographic Info

Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 8 (2008)
Issue (Month): 2 ()
Pages: 187-192

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Handle: RePEc:eaa:aeinde:v:8:y:2008:i:2_15

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  1. Frick, H, 1986. "A Note on a Dynamic Adjustment Equation for a Poisson Distributed Lag Model," Empirical Economics, Springer, vol. 11(1), pages 65-67.
  2. Prabhat Patnaik, 1997. "The context and consequences of economic liberalization in India," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 6(2), pages 165-178.
  3. Friedrich, Dieter, 1982. "A Dynamic Adjustment Equation for a Poisson Distributed Lag Model," Empirical Economics, Springer, vol. 7(3-4), pages 239-49.
  4. Kenneth Reinert, 1998. "Rural non-farm development: a trade-theoretic view," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 7(4), pages 425-437.
  5. Datt, Gaurav & Ravallion, Martin, 2002. "Is India's economic growth leaving the poor behind?," Policy Research Working Paper Series 2846, The World Bank.
  6. Mundle, S. & Tulasidhar, V.B., 1998. "Adjustment and Distribution: The Indian Experience," Papers 17, Asian Development Bank.
  7. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
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