Trade openness and income inequality: New empirical evidence.

We examine how trade openness influences income inequality within countries. The sample includes 139 countries over the period 1970–2014. We employ predicted openness as instrument to deal with the endogeneity of trade openness. The effect of trade openness on income inequality differs across countr...

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Publicado en:Economic Inquiry Vol. 60; no. 1; pp. 202 - 224
Autores principales: Dorn, Florian, Fuest, Clemens, Potrafke, Niklas
Formato: Artículo
Publicado: Wiley-Blackwell Jan2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Trade openness and income inequality: New empirical evidence.
      aug:
        au:
          Dorn, Florian
          Fuest, Clemens
          Potrafke, Niklas
        affil:
          ifo Institute, Munich, Germany
          Department of Economics, University of Munich (LMU), Munich, Germany
          CESifo, Munich, Germany
      su:
        China
        Income inequality
        Emerging markets
        Transition economies
        Openness to experience
      sug:
        subj:
          Income inequality
          Emerging markets
          Transition economies
          Openness to experience
          China
      keyword:
        development levels
        globalization
        income inequality
        instrumental variable estimation
        panel econometrics
        trade openness
        transition economies
        development levels
        globalization
        income inequality
        instrumental variable estimation
        panel econometrics
        trade openness
        transition economies
      ab: We examine how trade openness influences income inequality within countries. The sample includes 139 countries over the period 1970–2014. We employ predicted openness as instrument to deal with the endogeneity of trade openness. The effect of trade openness on income inequality differs across countries. Trade openness tends to disproportionately benefit the relative income shares of the very poor, but not necessarily all poor, in emerging and developing economies. In most advanced economies, trade openness increased income inequality, an effect that is driven by outliers. Our results suggest a strong effect of trade openness on inequality in China and transition countries.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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