Inequality and the import demand function.
In this paper we assess the empirical importance of changes in inequality on the demand for imports by examining panel data for 59 developing and developed countries for the 1970-1997 period. We find significant evidence supporting that inequality has a large influence on the demand for imports. Mor...
| Publicado en: | Oxford Economic Papers Vol. 64; no. 4; pp. 675 - 702 |
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| Autores principales: | , , |
| Formato: | Artículo |
| Publicado: |
Oxford University Press / USA
Oct2012
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | In this paper we assess the empirical importance of changes in inequality on the demand for imports by examining panel data for 59 developing and developed countries for the 1970-1997 period. We find significant evidence supporting that inequality has a large influence on the demand for imports. Moreover we find that this influence is positive for high-income countries (countries that mainly produce and export high quality varieties of vertically differentiated products) and negative for low-income countries (countries that produce and export low-quality varieties of vertically differentiated products). These findings are explained by developing a model of trade in vertically differentiated products. |
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