Caselli, Mauro (2009): Does wealth inequality reduce the gains from trade?
Download (252Kb) | Preview
Panel data on 54 developing countries between 1960 and 2000 are used to investigate how the impact of opening to trade on economic growth is affected by wealth inequality. The results suggest (a) that opening to trade tends to accelerate growth but (b) that the addition to growth depends inversely on the level of wealth inequality prior to opening. These findings confirm the general importance for rapid growth in developing countries of reducing inequalities of opportunity.
|Item Type:||MPRA Paper|
|Original Title:||Does wealth inequality reduce the gains from trade?|
|Keywords:||growth; inequality; openness; trade; developing countries|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development
F - International Economics > F1 - Trade
|Depositing User:||Mauro Caselli|
|Date Deposited:||21. May 2009 13:54|
|Last Modified:||15. Feb 2013 21:30|
Acemoglu, D. (1999). ‘Patterns of Skill Premia’, NBER Working Papers, no. 7018.
Acemoglu, D., Johnson, S. and Robinson, J. A. (2001). ‘The Colonial Origins of Comparative Development: An Empirical Investigation’, American Economic Review, vol. 91, no. 5, pp. 1369–1401.
Aghion, P., Caroli, E. and Garcia-Pe ̃nalosa, C. (1999). ‘Inequality and Economic Growth: The Perspective of the New Growth Theories’, Journal of Economic Literature, vol. 37, no. 4, pp. 1615–1660.
Anderson, E. (2005). ‘Openness and inequality in developing countries: A review of theory and recent evidence’, World Development, vol. 33, no. 7, pp. 1045–1063.
Attanasio, O. and Binelli, C. (2003). ‘Inequality, Growth and Redistributive Policies’, in Poverty, Inequalities and Growth: What’s at stake for development aid?, Paris: Afd/EUDN.
Bacchetta, M. and Jansen, M. (2003). ‘Adjusting to Trade Liberalization: The Role of Policy, Institutions and WTO Disciplines’, WTO Special Studies, no. 7.
Barro, R. J. and Lee, J.-W. (2001). ‘International Data on Educational Attainment: Updates and Implications’, Oxford Economic Papers, vol. 53, no. 3, pp. 541–63.
Beck, T., Demirguc-Kunt, A. and Levine, R. (2000). ‘A New Database on Financial Development and Structure’, World Bank Economic Review, vol. 14, pp. 597–605.
Bekaert, G., Harvey, C. R. and Lundblad, C. (2001). ‘Does Financial Liberalization Spur Growth?’, NBER Working Paper, no. 8245.
Ben-David, D. and Loewy, M. B. (2000). ‘Knowledge Dissemination, Capital Accumulation, Trade, and Endogenous Growth’, Oxford Economic Papers, vol. 52, no. 4, pp. 637–50.
Birdsall, N. and Londono, J. L. (1997). ‘Asset Inequality Matters: An Assessment of the World Bank’s Approach to Poverty Reduction’, American Economic Review, vol. 87, no. 2, pp. 32–37.
Chen, S. and Ravallion, M. (2000). ‘How did the world’s poorest fare in the 1990s?’, The World Bank Policy Research Working Paper Series, no. 2409.
Deaton, A. (2001). ‘Health, Inequality, and Economic Development’, NBER Working Papers, no. 8318.
Deininger, K. and Olinto, P. (2000). ‘Asset distribution, inequality, and growth’, The World Bank Policy Research Working Paper Series, no. 2375.
Dixit, A. K. and Norman, V. (1980). Theory of International Trade: A Dual, General Equilibrium Approach, London: Cambridge University Press.
Eastwood, R., Lipton, M. and Newell, A. (2004). ‘Farm Size’, mimeo, University of Sussex.
El-Ghonemy, M. R. (2003). ‘Land reform development challenges of 1963-2003 continue into the twenty-first century’, FAO Land Reform, Land Settlement and Cooperatives, no. 2.
Frankel, J. A. and Romer, D. (1999). ‘Does Trade Cause Growth?’, American Economic Review, vol. 89, no. 3, pp. 379–399.
Frankema, E. (2006). ‘The Colonial Origins of Inequality: Exploring the Causes and Consequences of Land Distribution’, Groningen Growth and Development Centre Research Memorandum, no. GD-81.
Freedom House (2007). Freedom in the World 2007: The Annual Survey of Political Rights and Civil Liberties, Freedom House, New York.
Galor, O., Moav, O. and Vollrath, D. (2004). ‘Land Inequality and the Origin of Divergence and Overtaking in the Growth Process: Theory and Evidence’, Brown University, Department of Economics Working Papers, no. 2003-04.
Global Financial Data (2008). GF Database, Global Financial Data, Los Angeles.
Goldberg, P. K. and Pavcnik, N. (2007). ‘Distributional Effects of Globalization in Developing Countries’, Journal of Economic Literature, vol. 45, no. 1, pp. 39–82.
Grossman, G. M. and Helpman, E. (1991). Innovation and Growth in the Global Economy, Cambridge, MA: MIT Press.
Haq, M. (1997). ‘The inevitable land reforms’, mimeo, Human Development Centre for The United Nations in Pakistan.
Hausmann, R., Pritchett, L. and Rodrik, D. (2005). ‘Growth Accelerations’, Journal of Economic Growth, vol. 10, no. 4, pp. 303–329.
Heston, A., Summers, R. and Aten, B. (2006). Penn World Table Version 6.2, Center for International Comparisons of Production, Income and Prices at the University of Pennsylvania.
Jenkins, R. (2005). ‘Globalization, Production and Poverty’, WIDER Research Paper, no. 40.
Krueger, A. O. and Berg, A. (2003). ‘Trade, Growth, and Poverty: A Selective Survey’, IMF Working Papers, no. 03/30.
Levine, R. (2005). ‘Finance and Growth: Theory and Evidence’, in P. Aghion and S. Durlauf (eds.), Handbook of Economic Growth, Handbook of Economic Growth, vol. 1, chap. 12, Elsevier, pp. 865–934.
Levine, R., Loayza, N. and Beck, T. (2000). ‘Financial Intermediation and Growth: Causality and Causes’, Journal of Monetary Economics, vol. 46, pp. 31–77.
McCulloch, N., Winters, L. A. and Cirera, X. (2002). Trade Liberalization and Poverty: A Handbook, London: Centre for Economic Policy Research.
Morrissey, O., Mbabazi, J. and Milner, C. (2002). ‘Inequality, Trade Liberalisation and Growth’, CSGR Working Paper, no. 102/02.
Neary, J. P. (2002). ‘Foreign Competition and Wage Inequality’, Review of International Economics, vol. 10, no. 4, pp. 680–93.
Ravallion, M. (2003). ‘The debate on globalization, poverty, and inequality : why measurement matters’, The World Bank Policy Research Working Paper Series, no. 3038.
Rodriguez, F. and Rodrik, D. (1999). ‘Trade Policy and Economic Growth: A Sceptic’s Guide to the Cross-National Evidence’, C.E.P.R. Discussion Papers, no. 2143.
Rodrik, D., Subramanian, A. and Trebbi, F. (2004). ‘Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development’, Journal of Economic Growth, vol. 9, no. 2, pp. 131–165.
Sachs, J. and Warner, A. (1995). ‘Economic Reform and the Progress of Global Integration’, Harvard Institute of Economic Research Working Papers, no. 1733.
Thoenig, M. and Verdier, T. (2003). ‘A Theory of Defensive Skill-Biased Innovation and Globalization’, American Economic Review, vol. 93, no. 3, pp. 709–728.
Thomas, V., Wang, Y. and Fan, X. (2002). ‘A New Dataset on Inequality in Education: Gini and Theil Indices of Schooling for 140 Countries, 1960-2000’, mimeo, World Bank.
Trefler, D. (1993). ‘International Factor Price Differences: Leontief Was Right!’, Journal of Political Economy, vol. 101, no. 6, pp. 961–87.
Ventura, J. (1997). ‘Growth and Interdependence’, The Quarterly Journal of Economics, vol. 112, no. 1, pp. 57–84.
Vollrath, D. (2007). ‘Land Distribution and International Agricultural Productivity’, American Journal of Agricultural Economics, vol. 89, no. 1, pp. 202–216.
Vollrath, D. and Erickson, L. (2007). ‘Land Distribution and Financial System Development’, IMF Working Papers, no. 07/83.
Wacziarg, R. and Welch, K. H. (2003). ‘Trade Liberalization and Growth: New Evidence’, NBER Working Papers, no. 10152. Wood, A. (1994). North-South Trade, Employment and Inequality: Changing Fortunes in a Skil l-Driven World, Oxford: Clarendon Press.
Wood, A. and Ridao-Cano, C. (1999). ‘Skill, trade, and international inequality’, Oxford Economics Papers, vol. 51, no. 1, pp. 89–119.
World Bank (2005). Economic Growth in the 1990s: Learning from a Decade of Reform, The World Bank.