Inequality, Trade and Development: Evidence from Developing Countries
Muhammad Majeed ()
MPRA Paper from University Library of Munich, Germany
This study analyzes the impact of trade on cross-country inequality using a panel data set from 65 developing counties over a long period 1970-2008. This study differs from the existing literature on distributional impact of trade by explicitly noting the importance of development stage in shaping the link. The analysis shows that the effect of trade on inequality depends upon the level of development of a trade integrating economy. Economies that have a high level of economic development acquire a favorable effect of trade while underdeveloped economies suffer from international economic integration. In sum, trade accentuates not ameliorate inequality in countries with low level of economic development.
Keywords: Trade; Development; Inequality; Developing Countries (search for similar items in EconPapers)
JEL-codes: C23 D31 F41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:50337
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