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Export Dynamics and Income Inequality: New Evidence on Export Quality

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  • Canh Phuc Nguyen

    (University of Economics Ho Chi Minh City (UEH)
    Health and Agricultural Policy Research Institute, University of Economics Ho Chi Minh City (UEH))

  • Thanh Dinh Su

    (University of Economics Ho Chi Minh City (UEH))

Abstract

Previous literature has highlighted the relationship between export diversification and income inequality. The present study attempts to explore the influence of export quality on income inequality. A global sample of 92 economies consisting of 30 low- and lower-middle-income economies (LMEs), 21 upper-middle-income economies (UMEs), and 41 high-income economies (HIEs) over the period 2002–2014, is collected to create a balanced set of panel data. Using econometric techniques for balanced panel data to deal with cross-sectional dependence, heteroscedasticity, and endogeneity, we first find that the effect of export quality is negative and significant on the Gini index pre-tax and pre-transfer in LMEs and UMEs, implying that export quality reduces income inequality. Second, export quality has a positive and significant impact on income inequality in HIEs. Our findings imply that different economic policies should be considered for dealing with income inequality among different income groups of economies.

Suggested Citation

  • Canh Phuc Nguyen & Thanh Dinh Su, 2022. "Export Dynamics and Income Inequality: New Evidence on Export Quality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(3), pages 1063-1113, October.
    • Handle: RePEc:spr:soinre:v:163:y:2022:i:3:d:10.1007_s11205-022-02935-4
    DOI: 10.1007/s11205-022-02935-4
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    More about this item

    Keywords

    Export quality; Income inequality; Global; Panel data;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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