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Economic Integration, Inequality and Growth: Latin America vs. the European economies in transition

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  • Giovanni Andrea Cornia

Abstract

This paper presents a simple theoretical framework to explain variations in income inequality over time and between countries. It also analyses the factors responsible for the widespread rise in inequality during the neo-liberal reforms of 1980-2000 in the fields of trade, foreign direct investment (FDI) and capital flows, and the rise in migration. Finally, it compares the decline in inequality observed in most of Latin America over 2000-2008 with the steady increase of inequality in many European transition economies during this period despite their return to robust growth. The paper argues that such divergence is explained by differences in policies.

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File URL: http://www.un.org/en/development/desa/papers/2011
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Bibliographic Info

Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 101.

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Length: 40 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:une:wpaper:101

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Web page: http://www.un.org/esa
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Related research

Keywords: policy reforms; neo-liberalism; international economic integration; income inequality; Latin America; transition economies of Europe;

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Cited by:
  1. Szekely, Miguel & Samano, Claudia, 2012. "Did Trade Openness Affect Income Distribution in Latin America? Evidence for the years 1980.2010," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. González, Mariano & Larrú, José María, 2012. "Egalitarian aid. The impact of aid on Latin American inequality," MPRA Paper 41660, University Library of Munich, Germany.
  3. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.

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