Growth, Trade, and Inequality

“Inequality, Trade Liberalisation and Growth”

There has been a recent resurgence of interest in the relationship between income inequality and growth. We use the WIDER/UNDP World Income Inequality Database to investigate the effects of inequality and trade liberalisation on growth in a sample of exclusively developing countries. Cross-section (long-run) and panel (short run) techniques are used to test for the effect of inequality on growt...

Trade, growth and wage inequality in Bangladesh

Using model selection techniques based on out-of-sample predictive ability criterion in a Vector Autoregression (VAR) framework, this paper empirically examines the causal relations among growth, trade, and wage inequality in Bangladesh between 1971 and 2000. There is some evidence of bi-directional causality between growth and inequality and between trade and growth. That growth causes trade a...

Growth and Inequality: The Role of Foreign Trade and Investment

Are Inequality and Trade Liberalization Influences on Growth and Poverty?

There has been a recent resurgence of interest in the relationship between income inequality and growth, manifested in a number of important publications. In parallel with this, concern with the impact of economic reform and globalization on developing countries has led to an upsurge of interest in linkages between policy reform, growth, inequality and poverty. We use the WIDER/UNDP World Incom...

Trade liberalization, Growth and Inequality in Bangladesh: An Empirical Analysis

This paper examines time series evidence to establish a link between trade, economic growth and income inequality in Bangladesh. The empirical results from a Vector Autoregression (VAR) model suggest that there is some evidence of trade liberalization accelerating growth in Bangladesh. Trade openness promotes investment. We find little evidence of trade affecting income distribution or of incom...