Campus Units

Economics

Document Type

Article

Publication Version

Accepted Manuscript

Publication Date

2007

Journal or Book Title

International Review of Economics and Finance

Volume

16

Issue

3

First Page or Article ID Number

347

Last Page

356

DOI

10.1016/j.iref.2006.02.001

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 “real income” or utility.

JEL Classification

F1, F13

Comments

NOTICE: this is the author’s version of a work that was accepted for publication in International Review of Economics and Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Review of Economics and Finance, [16, 3, (2007)] DOI: 10.1016/j.iref.2006.02.001

Copyright Owner

Elsevier Inc.

Language

en

File Format

application/pdf

Published Version

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