Did Trade Openness Affect Income Distribution in Latin America? Evidence for the years 1980.2010
AbstractThis paper offers a medium-term perspective for analysing the trade openness.inequality relationship in Latin America. We present three contributions. The first is that we assemble a database on income distribution indicators systematically estimated from household surveys with emphasis on within-country consistency of methodology, definitions, and coverage for the years 1980-2010. This 30-year database allows observing clearly that the increases in inequality throughout the 1980s and 1990s decades have been almost totally counteracted by the improvements during the first 10 years of the twenty-first century: 75 per cent of the deterioration in income distribution was reversed in the first decade of 2000. The second is an estimation of the association between trade openness and income distribution over the 30-year period. Our central conclusion in this regard is that greater trade openness is associated with contemporaneous increases in inequality in the region. The third is that trade openness contributed..together with other factors..to the increase in inequality during the 1980s and 1990s, but once fully implemented, it did not lead to further rises in inequality, and did not represent a permanent obstacle to improvements in income distribution triggered by other factors such as greater education levels across the population.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2012/03.
Date of creation: 2012
Date of revision:
inequality; education; trade;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-21 (All new papers)
- NEP-DEV-2012-03-21 (Development)
- NEP-HIS-2012-03-21 (Business, Economic & Financial History)
- NEP-INT-2012-03-21 (International Trade)
- NEP-LAM-2012-03-21 (Central & South America)
- NEP-LTV-2012-03-21 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gordon H. Hanson, 2003. "What Has Happened to Wages in Mexico since NAFTA?," NBER Working Papers 9563, National Bureau of Economic Research, Inc.
- de Hoyos, Rafael & Lustig, Nora, 2009. "Apertura comercial, desigualdad y pobreza. Reseña de los enfoques metodológicos, el estado del conocimiento y la asignatura pendiente," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(302), pages 283-328, abril-jun.
- Thomas Hertel & Jeffrey Reimer, 2005.
"Predicting the poverty impacts of trade reform,"
The Journal of International Trade & Economic Development,
Taylor & Francis Journals, vol. 14(4), pages 377-405.
- Attanasio, Orazio & Goldberg, Pinelopi K. & Pavcnik, Nina, 2004.
"Trade reforms and wage inequality in Colombia,"
Journal of Development Economics,
Elsevier, vol. 74(2), pages 331-366, August.
- Orazio Attanasio & Pinelopi Goldberg & Nina Pavcnik, 2003. "Trade Reforms and Wage Inequiality in Colombia," NBER Working Papers 9830, National Bureau of Economic Research, Inc.
- Attanasio, Orazio & Goldberg, Pinelopi & Pavcnik, Nina, 2003. "Trade Reforms and Wage Inequality in Colombia," CEPR Discussion Papers 4023, C.E.P.R. Discussion Papers.
- Eduardo Lora, 2001.
"Las Reformas Estructurales en América Latina: Qué Se Ha Reformado y Cómo Medirlo,"
7638, Inter-American Development Bank.
- Eduardo Lora, 2001. "Las Reformas estructurales en América Latina: Qué se ha reformado y cómo medirlo," Research Department Publications 4288, Inter-American Development Bank, Research Department.
- Peter H. Lindert & Jeffrey G. Williamson, 2001.
"Does Globalization Make the World More Unequal?,"
NBER Working Papers
8228, National Bureau of Economic Research, Inc.
- Antonio Spilimbergo & Juan Luis Londoño & Miguel Székely, 1997.
"Income Distribution, Factor Endowments, and Trade Openness,"
Research Department Publications
4088, Inter-American Development Bank, Research Department.
- Spilimbergo, Antonio & Londono, Juan Luis & Szekely, Miguel, 1999. "Income distribution, factor endowments, and trade openness," Journal of Development Economics, Elsevier, vol. 59(1), pages 77-101, June.
- Ferreira, Francisco H. G. & Leite, Phillippe G. & Wai-Poi, Matthew, 2007.
"Trade liberalization, employment flows, and wage inequality in Brazil,"
Policy Research Working Paper Series
4108, The World Bank.
- Ferreira, Francisco H.G. & Leite, Phillippe G. & Wai-Poi, Matthew, 2007. "Trade Liberalization, Employment Flows and Wage Inequality in Brazil," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Giovanni Andrea Cornia, 2010.
"Income Distribution under Latin America's New Left Regimes,"
Journal of Human Development and Capabilities,
Taylor & Francis Journals, vol. 11(1), pages 85-114.
- Giovanni Andrea cornia, 2009. "Income Distribution under Latin America’s New Left Regimes," Working Papers - Economics wp2009_16.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
- Manoj Atolia, 2002.
"Trade Liberalization and Rising Wage Inequality in Latin America: Reconciliation with HOS Theory,"
wp2002_03_01, Department of Economics, Florida State University, revised Feb 2006.
- Atolia, Manoj, 2007. "Trade liberalization and rising wage inequality in Latin America: Reconciliation with HOS theory," Journal of International Economics, Elsevier, vol. 71(2), pages 467-494, April.
- Guido G. Porto, 2007. "Globalisation and Poverty in Latin America: Some Channels and Some Evidence," The World Economy, Wiley Blackwell, vol. 30(9), pages 1430-1456, 09.
- Giovanni Andrea Cornia, 2011. "Economic Integration, Inequality and Growth: Latin America vs. the European economies in transition," Working Papers 101, United Nations, Department of Economics and Social Affairs.
- De Hoyos, Rafael E., 2005. "The Microeconomics of Inequality, Poverty and Market Liberalizing Reforms," Working Paper Series RP2005/63, World Institute for Development Economic Research (UNU-WIDER).
- Nicita, Alessandro, 2004. "Who benefited from trade liberalization in Mexico? Measuring the effects on household welfare," Policy Research Working Paper Series 3265, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).
If references are entirely missing, you can add them using this form.