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Is there an openness Kuznets curve? Evidence from Latin America

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  • Stephen Dobson
  • Carlyn Ramlogan

Abstract

Numerous studies have examined the relationship between income inequality and trade openness. This paper departs from previous work by considering a possible non-linear relationship between trade openness and inequality. The evidence is consistent with the idea of a Kuznets curve: inequality increases until a critical level of openness is reached after which inequality begins to fall. The finding of a non-linear relationship between trade openness and inequality implies that governments in Latin America should introduce redistribution policies, alongside trade liberalisation measures, so as to ease the adverse effects of trade liberalisation.

Suggested Citation

  • Stephen Dobson & Carlyn Ramlogan, 2008. "Is there an openness Kuznets curve? Evidence from Latin America," NBS Discussion Papers in Economics 2008/10, Economics, Nottingham Business School, Nottingham Trent University.
    • Handle: RePEc:nbs:wpaper:2008/10
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    References listed on IDEAS

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