IDEAS home Printed from https://ideas.repec.org/p/lis/liswps/159.html
   My bibliography  Save this paper

Exploring the Impact of Trade and Investment on Income Inequality: A Cross-National Sectoral Analysis of the Developed Market Economy Countries

Author

Listed:
  • David Jesuit
  • Douglas Roscoe
  • Vincent Mahler

Abstract

The central aim of this paper is to explore the relationship between international integration and domestic inequality in the developed market economy countries in the mid-1980s and early 1990s. The analysis examines two major modes of integration trade and direct foreign investment disaggregating each by economic sector and distinguishing between imports and exports, and inbound and outbound investment flows and stocks. The study finds few significant relationships between either trade or investment and any indicators of sectoral income distribution. The overall conclusion is that economic globalization is not a critically important factor explaining recent trends in income inequality in the Western world.

Suggested Citation

  • David Jesuit & Douglas Roscoe & Vincent Mahler, 1997. "Exploring the Impact of Trade and Investment on Income Inequality: A Cross-National Sectoral Analysis of the Developed Market Economy Countries," LIS Working papers 159, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:159
    as

    Download full text from publisher

    File URL: http://www.lisdatacenter.org/wps/liswps/159.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Timothy Smeeding, 1997. "American Income Inequality in a Cross-National Perspective: Why Are We So Different?," LIS Working papers 157, LIS Cross-National Data Center in Luxembourg.
    2. Pia Peltola & Suzanne Bianchi & Lynne Casper, 1996. "A Cross-National Look at Married Women s Economic Dependency," LIS Working papers 143, LIS Cross-National Data Center in Luxembourg.
    3. Mussa, Michael, 1974. "Tariffs and the Distribution of Income: The Importance of Factor Specificity, Substitutability, and Intensity in the Short and Long Run," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1191-1203, Nov.-Dec..
    4. Timothy Smeeding, 1997. "Financial Poverty in Developed Countries: The Evidence from LIS: Final Report to the UNDP," LIS Working papers 155, LIS Cross-National Data Center in Luxembourg.
    5. Marina Popova, 1996. "Income Inequality and Poverty of Economies in Transition," LIS Working papers 144, LIS Cross-National Data Center in Luxembourg.
    6. Andrea Brandolini & Nicola Rossi, 1995. "Growth, Inequality and Social Institutions," LIS Working papers 130, LIS Cross-National Data Center in Luxembourg.
    7. Atkinson, A B, 1996. "Income Distribution in Europe and the United States," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 15-28, Spring.
    8. Roland Bénabou, 1996. "Inequality and Growth," NBER Chapters, in: NBER Macroeconomics Annual 1996, Volume 11, pages 11-92, National Bureau of Economic Research, Inc.
    9. Cameron, David R., 1978. "The Expansion of the Public Economy: A Comparative Analysis," American Political Science Review, Cambridge University Press, vol. 72(4), pages 1243-1261, December.
    10. Russell Long, 1994. "The Differential Impact of the Global Economy on Men and Women Employed in Selected Industrial Sectors Which Experience High Levels of International Competition: A Cross-National Comparison," LIS Working papers 111, LIS Cross-National Data Center in Luxembourg.
    11. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
    12. Marc Rubin, 1996. "Poverty, Labor Force Status and the Social Safety Net," LIS Working papers 141, LIS Cross-National Data Center in Luxembourg.
    13. Bedard, Kelly & Ferrall, Christopher, 2003. "Wage and test score dispersion: some international evidence," Economics of Education Review, Elsevier, vol. 22(1), pages 31-43, February.
    14. Ann Nichols-Casebolt & Judy Krysik, 1995. "The Economic Well-Being of Never- and Ever-Married Single Mother Families: A Cross National Comparison," LIS Working papers 131, LIS Cross-National Data Center in Luxembourg.
    15. Timothy M. Smeeding & Peter Gottschalk, 1998. "The International Evidence on Income Distribution in Modern Economies: Where Do We Stand?," International Economic Association Series, in: Yair Mundlak (ed.), Contemporary Economic Issues, chapter 3, pages 39-61, Palgrave Macmillan.
    16. Steven Pressman, 1995. "The Gender Poverty Gap in Developed Countries: Causes and Cures," LIS Working papers 135, LIS Cross-National Data Center in Luxembourg.
    17. S. Adams & Tim Callan & Nina Smith & Shirley Dex & Siv Gustafsson & J rgen Schupp, 1995. "Gender Wage Differentials: New Cross-Country Evidence," LIS Working papers 134, LIS Cross-National Data Center in Luxembourg.
    18. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    19. Bernard Delhausse, 1995. "Working but Poor: A Reassessment," LIS Working papers 125, LIS Cross-National Data Center in Luxembourg.
    20. Uwe Wagschal, 1997. "Income Distribution, Inequality and Unemployment," LIS Working papers 152, LIS Cross-National Data Center in Luxembourg.
    21. J. David Richardson, 1995. "Income Inequality and Trade: How to Think, What to Conclude," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 33-55, Summer.
    22. Karel van den Bosch & Ive Marx, 1996. "Trends in Financial Poverty in OECD Countries," LIS Working papers 148, LIS Cross-National Data Center in Luxembourg.
    23. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1, March.
    24. Robert Z. Lawrence & Matthew J. Slaughter, 1993. "International Trade and American Wages in the 1980s: Giant Sucking Sound or Small Hiccup?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(2 Microec), pages 161-226.
    25. Sheila Shaver, 1996. "Universality and Selectivity in Income Support: An Assessment of the Issues," LIS Working papers 145, LIS Cross-National Data Center in Luxembourg.
    26. Midford, Paul, 1993. "International trade and domestic politics: improving on Rogowski's model of political alignments," International Organization, Cambridge University Press, vol. 47(4), pages 535-564, October.
    27. Sandra McIsaac & Richard Wilkinson, 1995. "Cause of Death, Income Distribution and Problems of Response Rates," LIS Working papers 136, LIS Cross-National Data Center in Luxembourg.
    28. Freeman, Richard B. & Katz, Lawrence F. (ed.), 1995. "Differences and Changes in Wage Structures," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261607, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeff Borland, 2000. "Economic Explanations of Earnings Distribution Trends in the International Literature and Application to New Zealand," Treasury Working Paper Series 00/16, New Zealand Treasury.
    2. Carsten Ochsen & Heinz Welsch, 2005. "Technology, Trade, and Income Distribution in West Germany: A Factor-Share Analysis, 1976–1994," Journal of Applied Economics, Taylor & Francis Journals, vol. 8(2), pages 321-345, November.
    3. John T. Addison & Douglas A. Fox & Christopher J. Ruhm, 2000. "Technology, Trade Sensitivity, and Labor Displacement," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 682-699, January.
    4. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    5. François Rycx & Robert Plasman, 2001. "Collective bargaining and poverty: a cross-national perspective," ULB Institutional Repository 2013/795, ULB -- Universite Libre de Bruxelles.
    6. Hibbs, Douglas A, Jr, 2000. "Bread and Peace Voting in U.S. Presidential Elections," Public Choice, Springer, vol. 104(1-2), pages 149-180, July.
    7. Eva Sierminska, 2004. "Female Income Differentials and Social Benefits: A Four Country Comparison," LIS Working papers 377, LIS Cross-National Data Center in Luxembourg.
    8. Burkhauser, Richard V & Holtz-Eakin, Douglas & Rhody, Stephen E, 1997. "Labor Earnings Mobility and Inequality in the United States and Germany during the Growth Years of the 1980s," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(4), pages 775-794, November.
    9. Lex Borghans & Bas ter Weel, 2008. "Understanding the Technology of Computer Technology Diffusion: Explaining Computer Adoption Patterns and Implications for the Wage Structure," Journal of Income Distribution, Ad libros publications inc., vol. 17(3-4), pages 37-70, September.
    10. Puhani, Patrick A., 2001. "Wage rigidities in Western Germany? Microeconometric evidence from the 1990s," ZEW Discussion Papers 01-36, ZEW - Leibniz Centre for European Economic Research.
    11. Manasse, Paolo & Stanca, Luca & Turrini, Alessandro, 2004. "Wage premia and skill upgrading in Italy: why didn't the hound bark?," Labour Economics, Elsevier, vol. 11(1), pages 59-83, February.
    12. Galiani, Sebastian & Sanguinetti, Pablo, 2003. "The impact of trade liberalization on wage inequality: evidence from Argentina," Journal of Development Economics, Elsevier, vol. 72(2), pages 497-513, December.
    13. Michael R. Smith, 2001. "Technological Change, the Demand for Skills, and the Adequacy of their Supply," Canadian Public Policy, University of Toronto Press, vol. 27(1), pages 1-22, March.
    14. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
    15. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
    16. Lindert, Peter H., 2000. "Three centuries of inequality in Britain and America," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 3, pages 167-216, Elsevier.
    17. Alberto Alesina & Joseph Zeira, 2006. "Technology and Labor Regulations," NBER Working Papers 12581, National Bureau of Economic Research, Inc.
    18. Kim, Yunhee & Lee, Jeong-Dong & Heshmati, Almas, 2008. "Analysis of Pay Inequality and its Impacts on Growth and Performance in the Korean Manufacturing Industry," IZA Discussion Papers 3774, Institute of Labor Economics (IZA).
    19. Daron Acemoglu, 2003. "Cross-Country Inequality Trends," Economic Journal, Royal Economic Society, vol. 113(485), pages 121-149, February.
    20. Dennis J. Snower, 1998. "Causes of changing earnings inequality," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 69-133.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lis:liswps:159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Piotr Paradowski (email available below). General contact details of provider: https://edirc.repec.org/data/lisprlu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.