Openness, inequality and poverty: Endowments matter
By J. Gourdon, Nicolas Maystre, Jaime de Melo. 2006
114 citations recorded by the source corpus.
Using tariffs as a measure of openness, this paper finds consistent evidence that the conditional effects of trade liberalization on inequality are correlated with relative factor endowments. Trade liberalization, measured by changes in tariff revenues, is associated with increases in inequality in countries well-endowed with highly skilled workers and capital or with workers that have very low education levels. Similar, although less robust, results are also obtained when decile data are used instead of the usual Gini coefficients. Taken together, the results are strongly supportive of the factor-proportions theory of trade and suggest that trade liberalization in poor countries where the share of the labor force with little education is high raises inequality. Simulation results also suggest that relatively small changes in inequality as measured by aggregate measures of inequality, like the Gini coefficient, are magnified when estimates are carried out using decile data.
Subfields: Economics and Econometrics, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/04a553374c21ead7e2e9289f5fb08c710e78cc38
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Citations in the corpus
- Do liberalization and globalization increase income inequality (2010, unknown): “32 Gwartney and Lawson (2008) EFI1 2000-1980 Change in EFI1 39 39 1.”
- Does economic globalisation affect income inequality? A meta‐analysis (2020, background): “…al. (2002) Baccaro (2011) Gissinger and Gleditsch (1999) Quinn (1997) Bandelj and Mahutga (2010) Gozgor and Ranjan (2017) Rama (2002) Barro (2000) Gourdon et al. (2008) Reuveny and Li (2003) Beck et al. (2007) Gustafsson and Johansson (1999) Roine et al. (2009) Beckfield (2006) Ha (2012) Roser…”
- Is Corruption Really Bad for Inequality? Evidence from Latin America (2011, background): “It is difficult to justify instruments such as financial development and black market premium as they may have a direct impact on inequality (for example, Barro, 2000 ; Morley, 2001 ; Lundberg and Squire, 2003 ; Gourdon et al, 2008 ), while spending on defence diverts resources away from educati”