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Is there an openness Kuznets curve? Evidence from Latin America

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  • Stephen Dobson
  • Carlyn Ramlogan

Abstract

Numerous studies have examined the relationship between income inequality and trade openness. This paper departs from previous work by considering a possible non-linear relationship between trade openness and inequality. The evidence is consistent with the idea of a Kuznets curve: inequality increases until a critical level of openness is reached after which inequality begins to fall. The finding of a non-linear relationship between trade openness and inequality implies that governments in Latin America should introduce redistribution policies, alongside trade liberalisation measures, so as to ease the adverse effects of trade liberalisation.

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File URL: http://www.ntu.ac.uk/research/document_uploads/85420.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by Nottingham Trent University, Nottingham Business School, Economics Division in its series Working Papers with number 2008/10.

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Date of creation: Jul 2008
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Handle: RePEc:nbs:wpaper:2008/10

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Web page: http://www.ntu.ac.uk/nbs

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