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Transitioning Democracies are a Risky Business in the South

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  • Mamoon, Dawood

Abstract

The paper finds that trade is insignificant in explaining income inequality. The results also suggest institutions are good for inequality mitigation for a larger sample of developed and developing countries. Though, the results do not change for some institutions like rule of law when the sample is restricted to developing countries. However, for other institutions like democracy and autocracy, the author finds that former is positively related with inequality and later is negatively related. The results shed light on the fact that transition to democracies come with higher risks for the developing countries and stable economies even with autocratic setup may have more equal societies when compared to newly adopted democratic set ups.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29528.

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Date of creation: Nov 2010
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Handle: RePEc:pra:mprapa:29528

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Keywords: Institutions; Trade; Inequality;

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  1. Alberto Chong & Mark Gradstein, 2004. "Inequality and Institutions," Research Department Publications, Inter-American Development Bank, Research Department 4361, Inter-American Development Bank, Research Department.
  2. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, Springer, vol. 9(3), pages 271-303, 09.
  3. Francisco Alcalá & Antonio Ciccone, 2003. "Trade and Productivity," Working Papers 12, Barcelona Graduate School of Economics.
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