Timing of trade liberalization

Ryuichi Tanaka

Journal of International Trade & Economic Development, 2007, vol. 16, issue 4, pages 447-473

Abstract: This paper studies the effects of trade liberalization on growth and long-run global income inequality using a two-country model of human capital accumulation by credit-constrained households. I show that the timing of trade liberalization is a crucial determinant of its effects on growth. Moreover, I show that the size of the long-run income gap between the two countries depends on the difference in domestic income inequality when they open up to trade. Based on these results, I analyze the effects of redistributive policy within a country. I show that redistribution in one country may increase income per capita of its trading partner if it is undertaken in a steady state, while the opposite is true if the policy is undertaken during transition.

Keywords: Income inequality; international trade; world income distribution; international policy transmission (search for similar items in EconPapers)
Date: 2007

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:taf:jitecd:v:16:y:2007:i:4:p:447-473

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.html

Access Statistics for this article

Journal of International Trade & Economic Development is edited by Pasquale M. Sgro and Bharat R. Hazari

More articles in Journal of International Trade & Economic Development from Taylor and Francis Journals
Series data maintained by Christopher F. Baum ().