Advanced Search
MyIDEAS: Login to save this paper or follow this series

How does trade affect regional inequalities?

Contents:

Author Info

  • Andres Rodriguez-Pose

    ()

  • Nicholas Gill

    ()

Abstract

As part of the ongoing globalisation of the world economy, the past twenty-five years have witnessed a steep rise in the amount of trade between nations, as well as changes in the composition of trade. This has been linked to economic growth, with most literature on the subject highlighting the benefits of greater openness. Concurrently, however, regional spatial inequalities within nations have also tended to increase steadily. In this paper we explore to what extent there is a link between the phenomena of increased trade flows and regional inequalities. We present a preliminary empirical evaluation based on eight major world economies, and ground these results in the theoretical literature. It emerges that the link between trade and regional inequalities is evidenced most strongly when sectoral shifts in the composition of trade are accounted for. Specifically, we find that as trade in primary sector goods loses importance in the composition of total trade, regional inequalities are likely to increase. Such an impact of changes in the composition of trade on regional inequalities is likely to have a greater negative impact on developing than on developed countries for two reasons. First, because the dimension of intra-national disparities tends to be greater in the developing than in the developed world. Second, because the share of agricultural trade in developing countries has traditionally been higher and has been declining at a much faster rate in recent decades.

Download Info

If 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.
File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa04/PDF/478.pdf
Download Restriction: no

Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p478.

as in new window
Length:
Date of creation: Aug 2004
Date of revision:
Handle: RePEc:wiw:wiwrsa:ersa04p478

Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Hanson, Gordon H, 1998. "North American Economic Integration and Industry Location," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 14(2), pages 30-44, Summer.
  2. Michael Storper & Yun-chung Chen, 2002. "Trade and the location of industries in the OECD and European Union," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 2(1), pages 73-107, January.
  3. Andr�s Rodr�guez-Pose & Nicholas Gill, 2003. "The global trend towards devolution and its implications," Environment and Planning C: Government and Policy, Pion Ltd, London, Pion Ltd, London, vol. 21(3), pages 333-351, June.
  4. Hatton, Timothy J. & Williamson, Jeffrey G., 1991. "Integrated and Segmented Labor Markets: Thinking in Two Sectors," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 51(02), pages 413-425, June.
  5. Javier Sánchez-Reaza, 2002. "The Impact of Trade Liberalization on Regional Disparities in Mexico," Growth and Change, Gatton College of Business and Economics, University of Kentucky, Gatton College of Business and Economics, University of Kentucky, vol. 33(1), pages 72-90.
  6. Hanson, Gordon H., 1996. "Economic integration, intraindustry trade, and frontier regions," European Economic Review, Elsevier, Elsevier, vol. 40(3-5), pages 941-949, April.
  7. Julie Silva & Robin Leichenko, 2003. "Regional Income Inequality and International Trade," Working Papers, Center for Economic Studies, U.S. Census Bureau 03-15, Center for Economic Studies, U.S. Census Bureau.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Daumal, Marie, 2010. "The Impact of Trade Openness on Regional Inequality: the Cases of India and Brazil," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/4295, Paris Dauphine University.
  2. Marie Daumal, 2010. "The impact of trade openness on regional inequality : the cases of India and Brazil," Working Papers, DIAL (Développement, Institutions et Mondialisation) DT/2010/04, DIAL (Développement, Institutions et Mondialisation).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa04p478. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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