Inequality, Trade and Development: Evidence from Developing Countries
This study analyzes the impact of trade on cross-country inequality using a panel data set from 65 developing counties over a long period 1970-2008. This study differs from the existing literature on distributional impact of trade by explicitly noting the importance of development stage in shaping the link. The analysis shows that the effect of trade on inequality depends upon the level of development of a trade integrating economy. Economies that have a high level of economic development acquire a favorable effect of trade while underdeveloped economies suffer from international economic integration. In sum, trade accentuates not ameliorate inequality in countries with low level of economic development.
|Date of creation:||02 Oct 2013|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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- Majeed, Muhammad Tariq, 2010. "Inequality, Trade Openness and Economic Growth in Asia," MPRA Paper 57772, University Library of Munich, Germany.
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- Muhammad Tariq Majeed & Ronald MacDonald, 2010. "Distributional and Poverty Consequences of Globalization: A Dynamic Comparative Analysis for Developing Countries," Working Papers 2010_22, Business School - Economics, University of Glasgow.
- Majeed, M Tariq, 2011. "Trade, Poverty and Employment: Empirical Evidence from Pakistan," MPRA Paper 45077, University Library of Munich, Germany.
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- Majeed, Dr. Muhammad Tariq, 2013. "Inequality, Financial Development and Government: Evidence from Low-Income Developing Countries," MPRA Paper 50296, University Library of Munich, Germany.
- Papanek, Gustav F. & Kyn, Oldrich, 1986. "The effect on income distribution of development, the growth rate and economic strategy," Journal of Development Economics, Elsevier, vol. 23(1), pages 55-65, September.
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