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Trade and Income Inequality in a Less Developed Country: The Case of Mozambique

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  • Julie A. Silva

Abstract

Although the relationship between international trade and income inequality has been widely studied in developing economies at the national level, less attention has been paid to regional differentiation within those countries. This article examines the differential impacts of trade in two distinct regions in Mozambique: the relatively more developed southern portion and the more isolated region north of the Zambezi River. Despite differences in physical geography and levels of human and physical capital, these two regions are governed by the same trade and economic development policies. The results indicate that the effects of agricultural trade orientation—the degree to which a region’s population is involved in the production and sale of cash crops and vegetable crops—on regional inequality are mixed. In southern Mozambique, the orientation toward crops traded within the country (vegetables) has inequality-increasing effects, whereas in northern Mozambique, the orientation toward internationally exported crops (cash crops) has inequality-dampening effects. These mixed findings imply a complex relationship between trade and inequality that varies by region and the type of trade. They suggest that regional trade and development policies that take historical, political, and geographic variation within countries into account would be better equipped to address the trade-related effects on uneven development than would national-level policy.

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  • Julie A. Silva, 2007. "Trade and Income Inequality in a Less Developed Country: The Case of Mozambique," Economic Geography, Taylor & Francis Journals, vol. 83(2), pages 111-136, April.
  • Handle: RePEc:taf:recgxx:v:83:y:2007:i:2:p:111-136
    DOI: 10.1111/j.1944-8287.2007.tb00339.x
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    Cited by:

    1. Hisako Kai & Shigeyuki Hamori, 2009. "Globalization, financial depth, and inequality in Sub-Saharan Africa," Economics Bulletin, AccessEcon, vol. 29(3), pages 2025-2037.
    2. James M Jeffers, 2013. "Double Exposures and Decision Making: Adaptation Policy and Planning in Ireland's Coastal Cities during a Boom—Bust Cycle," Environment and Planning A, , vol. 45(6), pages 1436-1454, June.
    3. Isabel Maria Casimiro & Júlio Machele, 2022. "Health and ethnic inequalities in Mozambique with special reference to leprosy," WIDER Working Paper Series wp-2022-50, World Institute for Development Economic Research (UNU-WIDER).
    4. M. Mesut Badur & Md. Monirul Islam & Kazi Sohag, 2023. "Globalization–Income Inequality Nexus in the Post-Soviet Countries: Analysis of Heterogeneous Dataset Using the Quantiles via Moments Approach," Mathematics, MDPI, vol. 11(7), pages 1-29, March.
    5. Seth Pipkin, 2018. "Managing Regional Impacts of Trade Liberalization: Informal Practices and Collaborative Economic Development on the U.S.–Mexico Border," Economic Development Quarterly, , vol. 32(2), pages 146-162, May.
    6. Benedito Cunguara & Joseph Hanlon, 2012. "Whose Wealth Is It Anyway? Mozambique's Outstanding Economic Growth with Worsening Rural Poverty," Development and Change, International Institute of Social Studies, vol. 43(3), pages 623-647, May.
    7. Corene Matyas & Julie Silva, 2013. "Extreme weather and economic well-being in rural Mozambique," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 66(1), pages 31-49, March.
    8. Kamel Bel Hadj Miled & Moheddine Younsi & Monia Landolsi, 2022. "Does microfinance program innovation reduce income inequality? Cross-country and panel data analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-15, December.
    9. Luca Agnello & Giorgio Fazio & Ricardo M. Sousa, 2016. "National fiscal consolidations and regional inequality in Europe," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 59-80.
    10. Bukhari, Mahnoor & Munir, Kashif, 2016. "Impact of Globalization on Income Inequality in Selected Asian Countries," MPRA Paper 74248, University Library of Munich, Germany.
    11. Araujo, Inacio F. & Haddad, Eduardo A., 2024. "Interregional Trade, Structural Changes and Regional Inequality," TD NEREUS 7-2024, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    12. Karen O’Brien and Robin Leichenko, 2007. "Human Security, Vulnerability and Sustainable Adaptation," Human Development Occasional Papers (1992-2007) HDOCPA-2007-09, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).

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