IDEAS home Printed from https://ideas.repec.org/a/sae/millen/v16y2025i2p256-273.html
   My bibliography  Save this article

International Trade and Wage Inequality in India: Does Direction of Trade Matter?

Author

Listed:
  • Pankaj Vashisht

Abstract

After following import-substituting policies for nearly three decades, India opted for liberal economic regime in the early 1990s. Since then, it has emerged as one of the fastest growing economies in the world. However, concerns have been raised about the distributional consequences of liberalization. This article attempts to quantify the impact of trade on wage inequality in the Indian manufacturing sector. Estimating a relative wage equation with a panel of 49 manufacturing industries, this article found a positive association between trade and wage disparity in Indian manufacturing, but the association is contingent on the direction of trade. Our results show that after controlling skill-biased technological change and other variables, trade, especially exports to developed and developing countries, has an opposite impact on wage disparity.

Suggested Citation

  • Pankaj Vashisht, 2025. "International Trade and Wage Inequality in India: Does Direction of Trade Matter?," Millennial Asia, , vol. 16(2), pages 256-273, June.
  • Handle: RePEc:sae:millen:v:16:y:2025:i:2:p:256-273
    DOI: 10.1177/09763996231174541
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09763996231174541
    Download Restriction: no

    File URL: https://libkey.io/10.1177/09763996231174541?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:millen:v:16:y:2025:i:2:p:256-273. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.