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North-South trade and income inequality

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  • Choi, E. Kwan

Abstract

This paper investigates the effects of North-South trade on international income inequality. While empirical studies suggest that trade liberalization encourages income convergence and reduces the per capita income gap between poor and rich countries, North-South trade is shown to increase the income gap between the two regions. On the other hand, trade liberalization by either region increases the welfare of both regions, and does not necessarily reduce the gap in モreal incomeヤ or utility.
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  • Choi, E. Kwan, 2007. "North-South trade and income inequality," International Review of Economics & Finance, Elsevier, vol. 16(3), pages 347-356.
  • Handle: RePEc:eee:reveco:v:16:y:2007:i:3:p:347-356
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    7. Choi, E. Kwan, 2001. "Neighbor-Immiserizing Growth: The Asian Crisis," Staff General Research Papers Archive 5146, Iowa State University, Department of Economics.
    8. Slaughter, Matthew J, 1997. "Per Capita Income Convergence and the Role of International Trade," American Economic Review, American Economic Association, vol. 87(2), pages 194-199, May.
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    Cited by:

    1. Choi, E. Kwan, 2010. "International trade in genetically modified products," International Review of Economics & Finance, Elsevier, vol. 19(3), pages 383-391, June.
    2. Mandal, Biswajit & Marjit, Sugata, 2010. "Corruption and wage inequality?," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 166-172, January.
    3. Park, Na Young, 2020. "Trust and trusting behavior in financial institutions: Evidence from South Korea," International Review of Economics & Finance, Elsevier, vol. 67(C), pages 408-419.

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