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A comparative analysis between the relation of income distribution and economic regional integration in East Asia and Latin America

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  • Ángela Jeaneth Ospina Enciso

Abstract

This paper analyses the relationship between inequality and de facto regional economic integration during the last two decades in Latin America and East Asia Pacific regions, focusing on intra-regional exports. Globalization has been considered as a driving of inequality, although export-led growth models are associated with high economic growth rates. Export-led growth models have been more dynamic in East Asia than in Latin America, through the development of supply chain networks of intermediate and final goods. Research questions explore the relation between inequality and patterns of de facto intra-regional trade. Empirical analysis uses a fixed effects panel data with Heteroskedasticity and Autocorrelation Consistent (HAC) covariance matrix. Results showed that increments in regional intra-trade are associated with reductions of inequality, more in East Asia Pacific than in Latin America. The contribution of this paper is the introduction of intra-regional trade as a new factor that is negatively associated with inequality.******Este trabajo analiza la relación entre la desigualdad y la integración económica regional de facto durante las últimas dos décadas en América Latina y la región de Asia Oriental y el Pacífico, centrándose en las exportaciones intraregionales. La globalización ha sido considerada como una causa de desigualdad. Sin embargo, los modelos de promoción de exportaciones son asociados con altas tasas de crecimiento económico. Los modelos de promoción de exportaciones han sido más dinámicos en Asia Oriental que en América Latina, a través del desarrollo de redes de suministro de bienes intermedios y finales. Laspreguntas de investigación exploran la relación entre desigualdad y los patrones del comercio intra-regional de facto. El análisis empírico hace uso de un panel de datos con efectos fijos, con una matriz de covarianza consistente ante heterocedasticidad. Los resultados muestran que los incrementos en comercio intra-regional están asociados con una reducción de la desigualdad, más en la región de Asia Oriental y el Pacífico que en América Latina. La contribución de este trabajo es la introducción del comercio intra-regional como un nuevo factor que es asociado negativamente a la desigualdad.

Suggested Citation

  • Ángela Jeaneth Ospina Enciso, 2011. "A comparative analysis between the relation of income distribution and economic regional integration in East Asia and Latin America," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 3(1), pages 107-127, June.
    • Handle: RePEc:col:000443:009737
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