Does wealth inequality reduce the gains from trade?

Mauro Caselli

MPRA Paper from University Library of Munich, Germany

Abstract: Panel data on 54 developing countries between 1960 and 2000 are used to investigate how the impact of opening to trade on economic growth is affected by wealth inequality. The results suggest (a) that opening to trade tends to accelerate growth but (b) that the addition to growth depends inversely on the level of wealth inequality prior to opening. These findings confirm the general importance for rapid growth in developing countries of reducing inequalities of opportunity.

Keywords: growth; inequality; openness; trade; developing countries (search for similar items in EconPapers)
JEL-codes: F1 O1 (search for similar items in EconPapers)
Date: 2009-04
New Economics Papers: this item is included in nep-dev and nep-int
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Related works:
Working Paper: Does wealth inequality reduce the gains from trade? (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:15329

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