Regional trade networks and income inequality

Yuheng Liang and Ming Zhang

Applied Economics Letters, 2025, vol. 32, issue 1, 14-22

Abstract: This paper aims to investigate the impact of regional trade networks on income inequality using cross-country panel data from 1990 to 2019. The regional trade networks raise the average incomes of high- and low-income groups but polarize the income distribution. Furthermore, we find the asymmetric effects of income inequality, namely that income inequality is more severe in low-income countries than in higher-income countries, and the most significant beneficiaries are the upper class in low-income countries.

Date: 2025
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DOI: 10.1080/13504851.2023.2244225

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