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North-South Trade and Income Inequality

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  • Choi, E. Kwan

Abstract

This paper investigates the effects of North-South trade on international income inequality. While empirical studies suggest that trade liberalization encourages income convergence and reduces the per capita income gap between poor and rich countries, North-South trade is shown to increase the income gap between the two regions. On the other hand, trade liberalization by either region increases the welfare of both regions, and does not necessarily reduce the gap in ﾓreal incomeﾔ or utility.

Suggested Citation

  • Choi, E. Kwan, 2007. "North-South Trade and Income Inequality," Staff General Research Papers Archive 12788, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:12788
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    Cited by:

    1. Choi, E. Kwan, 2010. "International trade in genetically modified products," International Review of Economics & Finance, Elsevier, vol. 19(3), pages 383-391, June.
    2. Mandal, Biswajit & Marjit, Sugata, 2010. "Corruption and wage inequality?," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 166-172, January.
    3. Park, Na Young, 2020. "Trust and trusting behavior in financial institutions: Evidence from South Korea," International Review of Economics & Finance, Elsevier, vol. 67(C), pages 408-419.

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