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Non-Gravity Trade

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

ANU Working Papers in Economics and Econometrics from Australian National University, College of Business and Economics, School of Economics

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 are 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)
Date: 2020-06
New Economics Papers: this item is included in nep-int and nep-mac
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Working Paper: Non-gravity trade (2020) Downloads
Working Paper: Non-Gravity Trade (2020) Downloads
Working Paper: Non-gravity trade (2020) Downloads
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