Trade Policy and the Household Distribution of Income
Joseph Francois and
Hugo Rojas-Romagosa ()
No 04-051/2, Tinbergen Institute Discussion Papers from Tinbergen Institute
We explore the relationship between import protection and the household distribution of income. We first develop a general-equilibrium mapping from tariffs to household inequality measures. This also yields predictions for linkages between tariffs, development level, and observed household inequality. Working with a new dataset, we then examine crosscountry variation in inequality with respect to import protection. Results are consistent with predictions of the factor-intensity model of trade. Regression results suggest that import protection makes income distribution worse for countries in labor-intensive diversification cones. This relationship shifts to one of falling inequality as incomes rise and we move to capital-intensive diversification cones.
Keywords: trade; inequality; distribution of income; Atkinson index; Gini coefficient; globalization; tariffs (search for similar items in EconPapers)
JEL-codes: F13 D31 O15 (search for similar items in EconPapers)
Date: 2004-05-04, Revised 2004-06-15
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Working Paper: Trade Policy and the Household Distribution of Income (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20040051
Access Statistics for this paper
More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().