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Inequality, Trade and Development: Evidence from Developing Countries

  • Majeed, Dr. Muhammad Tariq

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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 50337.

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Date of creation: 02 Oct 2013
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Handle: RePEc:pra:mprapa:50337
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  1. 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.
  2. Majeed, Muhammad Tariq & MacDonald, Ronald, 2011. "Corruption and Financial Intermediation in a Panel of Regions: Cross-Border Effects of Corruption," SIRE Discussion Papers 2011-67, Scottish Institute for Research in Economics (SIRE).
  3. Majeed, M Tariq, 2011. "Trade, Poverty and Employment: Empirical Evidence from Pakistan," MPRA Paper 45077, University Library of Munich, Germany.
  4. Daron Acemoglu, 1999. "Patterns of Skill Premia," NBER Working Papers 7018, National Bureau of Economic Research, Inc.
  5. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," NBER Working Papers 5956, National Bureau of Economic Research, Inc.
  6. Robbins, Donald J., 2003. "The impact of trade liberalization upon inequality in developing countries : a review of theory and evidence," ILO Working Papers 993650553402676, International Labour Organization.
  7. Muhammad Tariq Majeed & Ronald MacDonald, 2010. "Corruption and the military in politics: theory and evidence from around the world," Working Papers 2010_34, Business School - Economics, University of Glasgow.
  8. Majeed, Muhammad Tariq, 2010. "Inequality, Trade Openness and Economic Growth in Asia," MPRA Paper 57772, University Library of Munich, Germany.
  9. Yeaple, Stephen Ross, 2005. "A simple model of firm heterogeneity, international trade, and wages," Journal of International Economics, Elsevier, vol. 65(1), pages 1-20, January.
  10. Gordon H. Hanson & Ann Harrison, 1999. "Trade Liberalization and Wage Inequality in Mexico," ILR Review, Cornell University, ILR School, vol. 52(2), pages 271-288, January.
  11. Robbins, Donald J, 2003. "The impact of trade liberalization upon inequality in developing countries : a review of theory and evidence," ILO Working Papers 365055, International Labour Organization.
  12. 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.
  13. Majeed, Dr. Muhammad Tariq, 2013. "Inequality, Financial Development and Government: Evidence from Low-Income Developing Countries," MPRA Paper 50296, University Library of Munich, Germany.
  14. Donald Robbins, 2003. "The impact of trade liberalization upon inequality in developing countries - A review of theory and evidence-," DOCUMENTOS DE ECONOMÍA 003601, UNIVERSIDAD JAVERIANA - BOGOTÁ.
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