Income Inequality as a Determinant of Trade Flows*

Helena Bohman () and Désirée Nilsson ()
Additional contact information
Helena Bohman: Jönköping International Business School, Postal: Jönköping University, P.O. Box 1026, SE-551 11 Jönköping,
Désirée Nilsson: Jönköping International Business School, Postal: Jönköping University, P.O. Box 1026, SE-551 11 Jönköping,

No 73, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: Consumer studies have a long tradition of incorporating non-homothetic preferences in their models, whereas this has been very uncommon in studies of international trade. We use a model from Mitra and Trindade (2005) to set up a gravity model in which we include income distribution measures as explanatory variables for the exporting as well as for the importing countries. Our results indicate that non-homothetic preferences significantly affect both exports and imports.

Keywords: income inequality; trade flows (search for similar items in EconPapers)
JEL-codes: D31 F10 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2006-09-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://static.sys.kth.se/itm/wp/cesis/cesiswp73.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:hhs:cesisp:0073

Access Statistics for this paper

More papers in Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Vardan Hovsepyan ().