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The Effects of Economic Liberalization on Income Distribution: A Panel-Data Analysis

In: Wages, Employment, Distribution and Growth

Author

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  • Gerardo Angeles-Castro

Abstract

The economic liberalization process, undertaken on a global scale since the early 1980s, has induced support for a set of market-oriented policies that can be summarized as deregulation, privatization, liberalization of markets and macroeconomic discipline. This prescription creates the preconditions for the expansion of trade and the flow of investments across countries. The theoretical support for this development model is standard neoclassical theory (Jones 1988: 30–3; Corden 1993), which argues that trade, investment, and in general the market mechanisms boost growth and facilitate development. This view also holds that an important factor affecting growth and the effectiveness of the market system is the efficient organization of the domestic economy itself (Gilpin 1987: 265–6).

Suggested Citation

  • Gerardo Angeles-Castro, 2006. "The Effects of Economic Liberalization on Income Distribution: A Panel-Data Analysis," Palgrave Macmillan Books, in: Eckhard Hein & Arne Heise & Achim Truger (ed.), Wages, Employment, Distribution and Growth, chapter 7, pages 151-180, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37178-1_8
    DOI: 10.1057/9780230371781_8
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    Cited by:

    1. Quinonez, Pablo, 2022. "Social spending and income inequality in Latin America. A panel data approach," MPRA Paper 113538, University Library of Munich, Germany.
    2. Rolph van der Hoeven, 2010. "Labour Markets Trends, Financial Globalization and the current crisis in Developing Countries," Working Papers 99, United Nations, Department of Economics and Social Affairs.

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