Trade and Income Inequality in Developing Countries
We use a dynamic specification to estimate the impact of trade on within-country income inequality in a sample of 65
developing countries (DCs) over the 1980¿99 period. Our results suggest that trade with high income countries worsen income distribution
in DCs, through both imports and exports. These findings provide support to the hypothesis that technological differentials and the
skill biased nature of new technologies may be important factors in shaping the distributive effects of trade. Moreover, we observe that
the previous results only hold for middle-income countries (MICs); we interpret this evidence by considering the greater potential for
technological upgrading in MICs
MESCHI Elena;
VIVARELLI Marco;
2009-02-12
PERGAMON-ELSEVIER SCIENCE LTD
JRC49826
0305-750X,
www.elsevier.com/locate/worlddev,
https://publications.jrc.ec.europa.eu/repository/handle/JRC49826,
10.1016/j.worlddev.2008.06.002,
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