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Inequality in emerging countries

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  • Nathalie Chusseau

    () (EQUIPPE, University of Lille 1)

  • Joel Hellier

    () (EQUIPPE, University of Lille 1, and LEMNA, University of Nantes)

Abstract

We review the theoretical and empirical economic literature upon income inequality in emerging countries. We firstly describe the main observed developments and show that these are rather diverse across countries and developing regions. We subsequently expose the main theoretical mechanisms. We make a distinction between the traditional approaches (Kuznets, Lewis, Stolper-Samuelson) and the new explanations. In the latter, globalization and globalization-driven technological changes are at the core of the analyses. Both approaches bring out several opposite mechanisms. Finally, the empirical estimates display rather conflicting results. Most cross-country studies find a weak impact of globalization on income inequality. In contrast, several longitudinal studies concerning countries taken separately or small groups of countries reveal a positive correlation between openness and the relative demand for skill and inequality. These apparently conflicting findings reflect the opposite mechanisms linked to globalisation and the differences in countries’ experiences.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-256.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 256.

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Length: 27 pages
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Handle: RePEc:inq:inqwps:ecineq2012-256

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Web page: http://www.ecineq.org
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Related research

Keywords: Development; Emerging Countries; Globalization; Inequality; Technology.;

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References

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  6. Joël Hellier, 2012. "The North-South HOS Model, inequality and globalization," Working Papers 244, ECINEQ, Society for the Study of Economic Inequality.
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  17. Beyer, Harald & Rojas, Patricio & Vergara, Rodrigo, 1999. "Trade liberalization and wage inequality," Journal of Development Economics, Elsevier, vol. 59(1), pages 103-123, June.
  18. Robert E. Lipsey, 2002. "Home and Host Country Effects of FDI," NBER Working Papers 9293, National Bureau of Economic Research, Inc.
  19. Francis Green & Andy Dickerson & Jorge Saba Arbache, 2000. "A Picture of Wage Inequality and the Allocation of Labour Through a Period of Trade Liberalisation: The Case of Brazil," Studies in Economics 0013, Department of Economics, University of Kent.
  20. Chen, Zhihong & Ge, Ying & Lai, Huiwen, 2011. "Foreign Direct Investment and Wage Inequality: Evidence from China," World Development, Elsevier, vol. 39(8), pages 1322-1332, August.
  21. Joël Hellier & Stéphane Lambrecht, 2012. "Inequality, growth and welfare: The main links," Working Papers 258, ECINEQ, Society for the Study of Economic Inequality.
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Cited by:
  1. Nathalie Chusseau & Joël Hellier, 2012. "Globalization and Inequality: Where do we stand?," Working Papers 279, ECINEQ, Society for the Study of Economic Inequality.
  2. Joël Hellier, 2012. "The North-South HOS Model, inequality and globalization," Working Papers 244, ECINEQ, Society for the Study of Economic Inequality.

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