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International Trade and Income Distribution: Reconsidering the Evidence

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Author Info
Isabelle Bensidoun
Sebastien Jean
Aude Sztulman

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Abstract

This paper reconsiders the evidence concerning the influence of international trade on income distribution. Our analysis is based on a theoretical model which does not make any restrictive assumption about how trade specialization is linked to factor endowments. In this framework, the influence of international trade changes on income distribution is captured by a specific definition of the factor content of net export changes. Our main empirical finding is that the factor content of net export changes, expressed relatively to the country's factor endowment, does have a significant impact on income distribution, but the sign and magnitude of this impact is conditional on country’s income level or on the share of non-educated in the population.

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Paper provided by CEPII research center in its series Working Papers with number 2005-17.

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Date of creation: Oct 2005
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Handle: RePEc:cii:cepidt:2005-17

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Related research
Keywords: International trade; income distribution; international integration; globalization; growth;

Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
D30 - Microeconomics - - Distribution - - - General

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  1. Elena Meschi & Marco Vivarelli, 2007. "Globalization and Income Inequality," IZA Discussion Papers 2958, Institute for the Study of Labor (IZA). [Downloadable!]
  2. de Melo, Jaime & Gourdon, Julien & Maystre, Nicolas, 2006. "Openness, Inequality and Poverty: Endowments Matter," CEPR Discussion Papers 5738, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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