Trade openness and spatial inequality in emerging countries

Rodríguez-Pose, Andrés and Roberto Ezcurra
Authors registered in the RePEc Author Service: Andrés Rodríguez-Pose

No 9428, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Emerging world countries have experienced over the last two decades a significant change in their trade patterns. Bold trade reforms have been followed by rapid rises in international trade levels. However, despite these radical changes, we know remarkably little about how changes in trade patterns are affecting the evolution of regional inequality in the developing world. This paper addresses the link between trade openness and spatial inequality across 22 emerging countries over the period between 1990 and 2006. Our findings show that changes in international trade bring about a significant rise in within country inequality across the developing world and that this impact is greatest in the poorest countries. This result is robust to the inclusion of a number of control variables, and to changes in the specification of the sample and in the measure used to quantify the level of regional disparities. Consequently, the increase in trade exposure across the emerging world, while possibly benefiting the countries involved in the process in aggregate terms, is generating winning and losing regions.

Keywords: Trade; Spatial inequality; Economic growth; Convergence/divergence; Emerging countries; Developing world (search for similar items in EconPapers)
JEL-codes: F14 F43 F63 O18 R11 (search for similar items in EconPapers)
Date: 2013-04
New Economics Papers: this item is included in nep-geo and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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