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Spatial Dependence Of Income Inequality Among Trading Partners

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  • FADI A. FAWAZ

    ()
    (Department of Economics, Jamestown College, Jamestown, ND 58405, USA)

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    Abstract

    Questions surrounding income inequality have received great attention in the recent economic literature. Traditionally the literature does not attempt to investigate how income inequality in a country could be affected by the income inequality of countries economically related to it. Using Trade Spatial Lags, this paper shows that a country's income inequality is affected by the inequality of its top trading partners. This investigation shows a strong positive relationship of the Gini coefficient among major trading partners. To conduct the study, we use panel data for a sample of 180 countries from 1960 to 2008.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Middle East Development Journal.

    Volume (Year): 03 (2011)
    Issue (Month): 02 ()
    Pages: 215-232

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    Handle: RePEc:wsi:medjxx:v:03:y:2011:i:02:p:215-232

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    Related research

    Keywords: Spatial econometrics; income inequality; Gini coefficient;

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