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Income inequalities and international trade in goods and services: short and long-run evidence

Author

Listed:
  • Nicolas Fleury

    (Université Lille Nord (France))

  • Sylvain Petit
  • Aurélie Cassette

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this article, we study short and long-run effects of trade openness in services on wage inequalities between different points of the income distribution. The sample covers 10 OECD countries from 1980 to 2005. We find a differentiated impact of trade in goods compared to trade in services: while trade in goods has a short and a long-run impact on inequalities, trade in services has only long-run effects. We also find that international trade in services enhances inequalities in a stronger way than international trade in goods.

Suggested Citation

  • Nicolas Fleury & Sylvain Petit & Aurélie Cassette, 2012. "Income inequalities and international trade in goods and services: short and long-run evidence," Post-Print hal-01831503, HAL.
    • Handle: RePEc:hal:journl:hal-01831503
    DOI: 10.1080/08853908.2012.682023
    Note: View the original document on HAL open archive server: https://hal.science/hal-01831503
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    Cited by:

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    2. Uddin, Md. Nezum, 2020. "Bangladesh: Income Inequality and Globalization," Asian Business Review, Asian Business Consortium, vol. 10(1), pages 43-52.
    3. Raymond Kofi Adjei & Veronika Kajurová, 2021. "What Affects Income in Sub-Saharan Africa?," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 7(2), pages 223-237.
    4. Hajer Kratou & Mohamed Goaied, 2016. "How Can Globalization Affect Income Distribution? Evidence from Developing Countries," The International Trade Journal, Taylor & Francis Journals, vol. 30(2), pages 132-158, March.
    5. Mert Akyuz & Ghislain Nono Gueye & Cagin Karul, 2022. "Long-run dynamics between trade liberalization and income inequality in the European Union: a second generation approach," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(3), pages 769-792, August.
    6. Petit, Sylvain, 2016. "International trade in services and inequalities: Empirical evaluation and role of tourism services," MPRA Paper 75206, University Library of Munich, Germany.
    7. Kaitlin Alper & Evelyne Huber & John D. Stephens, 2019. "Work and Poverty in Post-Industrial Democracies," LIS Working papers 763, LIS Cross-National Data Center in Luxembourg.
    8. Andoni Fornio Barusman & Dr. M. Yusuf Sulfarano Barusman, 2017. "The Impact of International Trade on Income Inequality in the United States since 1970's," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 35-50.
    9. Sugiharso Safuan, 2017. "ASEAN-China Free Trade Area: An Assessment of Tariff Elimination Effect on Welfare," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 27-37.
    10. Bukhari, Mahnoor & Munir, Kashif, 2016. "Impact of Globalization on Income Inequality in Selected Asian Countries," MPRA Paper 74248, University Library of Munich, Germany.

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F10 - International Economics - - Trade - - - General

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