Non-Gravity Trade

Markus Brueckner, Ngo Long and Joaquin Vespignani
Authors registered in the RePEc Author Service: Markus Brueckner

No 388, Globalization Institute Working Papers from Federal Reserve Bank of Dallas

Abstract: This paper examines the relationship between countries’ bilateral trade with the United States that is not due to gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the population is educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As education of the population increases, the correlation between non-gravity trade and income inequality becomes smaller. Non-gravity trade has no significant effect on income inequality in countries that are world leaders in education.

Keywords: Non-Gravity Trade; Inequality; Education (search for similar items in EconPapers)
JEL-codes: E2 F1 (search for similar items in EconPapers)
Pages: 77
Date: 2020-05-29
New Economics Papers: this item is included in nep-int and nep-mac
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Related works:
Working Paper: Non-Gravity Trade (2020)
Working Paper: Non-gravity trade (2020)
Working Paper: Non-gravity trade (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:feddgw:88095

DOI: 10.24149/gwp388

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