Inequality and the import demand function

Antonis Adam, Margarita Katsimi and Thomas Moutos

Oxford Economic Papers, 2012, vol. 64, issue 4, 675-701

Abstract: 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. Copyright 2012 Oxford University Press 2011 All rights reserved, Oxford University Press.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://hdl.handle.net/10.1093/oep/gpr050 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Journal Article: Inequality and the US import demand function (2011)
Working Paper: Inequality and the Import Demand Function (2008)
Working Paper: Inequality and the US Import Demand Function (2006)
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:oup:oxecpp:v:64:y:2012:i:4:p:675-701

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().