Income Inequalities and International Trade in Goods and Services: Short- and Long-Run Evidence

Aurélie Cassette, Nicolas Fleury and Sylvain Petit ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this article, we study the short- and long-run effects of trade openness in services on wage inequalities. The sample covers ten Organization for Economic Cooperation and Development (OECD) countries from 1980 to 2005. We find a differentiated impact of trade in goods compared to trade in services: while trade in goods has a short- and a long-run impact on inequalities, trade in services has only long-run effects. Moreover, we also find that international trade in services has a stronger impact on inequalities than international trade in goods, and this effect does not concern only inequalities between top incomes and low incomes but also between top incomes and median incomes.

Keywords: inequality; openness trade; trade of services; Error Correction Model (ECM); cointegrated panel model (search for similar items in EconPapers)
JEL-codes: C23 D31 F10 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Income inequalities and international trade in goods and services: short and long-run evidence (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:75205

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