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Does wealth inequality reduce the gains from trade?

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  • Mauro Caselli

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Abstract

Panel data on 54 developing countries between 1960 and 2000 are used to investigate how the impact of opening to trade on economic growth is affected by wealth inequality.� The results suggest (a) that opening to trade tends to accelerate growth but (b) that the addition to growth depends inversely on the level of wealth inequality prior to opening.� These findings confirm the general importance for rapid growth in developing countries of reducing inequality of opportunity.

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 148 (2012)
Issue (Month): 2 (June)
Pages: 333-356

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Handle: RePEc:spr:weltar:v:148:y:2012:i:2:p:333-356

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Keywords: Growth; Inequality; Openness; Trade; Developing countries; Financial development; F10; F43; O10;

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Cited by:
  1. Caselli, Mauro, 2013. "Credit constraints, inequality and the growth gains from trade," Economics Letters, Elsevier, vol. 121(1), pages 43-47.

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