Openness, Inequality, and Poverty: Endowments Matter

Julien Gourdon, Nicolas Maystre and Jaime Melo De
Additional contact information
Jaime Melo De: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique

CERDI Working papers from HAL

Abstract: Using tariffs as a measure of openness, this paper finds consistent evidence that the conditional effects of trade liberalization on inequality are correlated with relative factor endowments. Trade liberalization, measured by changes in tariff revenues, is associated with increases in inequality in countries well-endowed in highly skilled workers and capital or with workers that have very low education levels. Similar, though less robust, results are also obtained when decile data are used instead of the usual Gini coefficients. Taken together, the results are strongly supportive of the factor-proportions theory of trade and suggest that trade liberalization in poor countries where the share of the labor force with little education is high raises inequality. Simulation results also suggest that relatively small changes in inequality as measured by aggregate measures of inequality like the Gini coefficient are magnified when estimates are carried out using decile data.

Keywords: international trade; Income distribution; Poverty (search for similar items in EconPapers)
Date: 2011-01-18
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00557112
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-00557112/document (application/pdf)

Related works:
Chapter: Openness, Inequality and Poverty: Endowments Matter (2015)
Working Paper: Openness, Inequality, and Poverty: Endowments Matter (2011)
Journal Article: Openness, inequality and poverty: Endowments matter (2008)
Working Paper: Opennes, Inequality, and Poverty: Endowments Matter (2008)
Working Paper: Openness, Inequality and Poverty: Endowment Matter? (2008)
Working Paper: Openness, Inequality, and Poverty: Endowments Matter (2007)
Working Paper: Openness, Inequality and Poverty: Endowments Matter (2006)
Working Paper: Openness, inequality, and poverty: endowments matter (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:hal:cdiwps:halshs-00557112

Access Statistics for this paper

More papers in CERDI Working papers from HAL
Bibliographic data for series maintained by Contact - CERDI - Université Clermont Auvergne ().