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Regional trade networks and income inequality

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  • Yuheng Liang
  • Ming Zhang

Abstract

This paper aims to investigate the impact of regional trade networks on income inequality using cross-country panel data from 1990 to 2019. The regional trade networks raise the average incomes of high- and low-income groups but polarize the income distribution. Furthermore, we find the asymmetric effects of income inequality, namely that income inequality is more severe in low-income countries than in higher-income countries, and the most significant beneficiaries are the upper class in low-income countries.

Suggested Citation

  • Yuheng Liang & Ming Zhang, 2025. "Regional trade networks and income inequality," Applied Economics Letters, Taylor & Francis Journals, vol. 32(1), pages 14-22, January.
    • Handle: RePEc:taf:apeclt:v:32:y:2025:i:1:p:14-22
    DOI: 10.1080/13504851.2023.2244225
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