Is there an openness Kuznets curve? Evidence from Latin America

Stephen Dobson and Carlyn Ramlogan

NBS Discussion Papers in Economics from Economics, Nottingham Business School, Nottingham Trent University

Abstract: Numerous studies have examined the relationship between income inequality and trade openness. This paper departs from previous work by considering a possible non-linear relationship between trade openness and inequality. The evidence is consistent with the idea of a Kuznets curve: inequality increases until a critical level of openness is reached after which inequality begins to fall. The finding of a non-linear relationship between trade openness and inequality implies that governments in Latin America should introduce redistribution policies, alongside trade liberalisation measures, so as to ease the adverse effects of trade liberalisation.

Date: 2008-07
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http://www.ntu.ac.uk/__data/assets/pdf_file/0020/3 ... ss-kuznets-curve.pdf First version, 2008 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:nbs:wpaper:2008/10

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