TY - JOUR
T1 - The interaction between income inequality and imports of manufactured goods
T2 - A case for developing countries
AU - Fadi, A. Fawaz
AU - Rahnamamoghadam, Masha
PY - 2011/9
Y1 - 2011/9
N2 - Questions surrounding income inequality have received much attention in recent economic literature. The effects of the imports of manufactured goods on income inequality in developing countries are found to be inconclusive in the existing literature. This study proposes a "threshold effect" to address this issue. We argue that when imports benefit a large portion of population, a decrease in income inequality is more likely to occur within the country. We use a dynamic specification to estimate the impact of trade on within-country income inequality in a sample for low- and high-income, developing countries (LIDC and HIDC) over the period 1970-2009. We find that if the trade of manufactured goods is above (below) the threshold, income inequality will decrease (increase).
AB - Questions surrounding income inequality have received much attention in recent economic literature. The effects of the imports of manufactured goods on income inequality in developing countries are found to be inconclusive in the existing literature. This study proposes a "threshold effect" to address this issue. We argue that when imports benefit a large portion of population, a decrease in income inequality is more likely to occur within the country. We use a dynamic specification to estimate the impact of trade on within-country income inequality in a sample for low- and high-income, developing countries (LIDC and HIDC) over the period 1970-2009. We find that if the trade of manufactured goods is above (below) the threshold, income inequality will decrease (increase).
KW - Developing countries
KW - Hansen
KW - Income inequality
KW - Manufacturing employment
KW - Trade
UR - http://www.scopus.com/inward/record.url?scp=84862663267&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:84862663267
VL - 20
SP - 6
EP - 23
JO - Journal of Income Distribution
JF - Journal of Income Distribution
SN - 0926-6437
IS - 3-4
ER -