Purpose – Since the 1960s, the affluent democracies have experienced substantial changes in earnings inequality at the same time as heightening economic globalization. This paper investigates the relationship between these two processes. Methodology/Approach – I use fixed-effects models, and comprehensive measures of globalization and earnings inequality to scrutinize the relationship between t...

Does freer trade increase income inequality within countries, perhaps sufficiently to offset any benefits to the poor from higher overall per capita income? Figure 4 suggests that there is no simple association between changes in trade openness and changes in inequality. Certainly there are many well known cases of countries where inequality has risen as they became more integrated into the wor...

This study is an attempt to explore the impact of trade and financial openness on government size in the case of Pakistan. In doing so, we utilized FMOLS for cointegration and Ng-Perron for unit root estimation along with ECM for short run dynamics. Empirical results reveal that current government expenditures influence government size in future. Trade-openness is associated positively with the...

We construct a time-variant, price-based measure of trade distortions in 28 manufacturing industries for a large sample of countries over the last four decades, documenting facts consistent with the argument that changes in relative prices are an important channel through which an economy’s openness affects outcomes. First, we find that price distortions at the aggregate level are negatively as...

Attempts are made to provide a theoretical justification for using the gravity model in the analysis of bilateral trade and apply the generalized gravity model to analyse the Bangladesh’s trade with its major trading partners using the panel data estimation technique. We have estimated the gravity model of trade (sum of exports and imports), the gravity model of export and the gravity model of ...

Since the 1980s, income inequality has increased significantly in developed and developing countries. The literature also seen studies that attempt to explain this rising trend inequality. Some explaining increase various ways have focused on economic globalization. Questions how steps taken towards liberalization international trade finance increasing market integration affect been at center o...

Migration, Trade and Income This paper explores the relationship between openness to trade, immigration, and income per person across countries. To address endogeneity concerns we extend the instrumentalvariables strategy introduced by Frankel and Romer (1999). We build predictors of openness to immigration and to trade for each country by using information on bilateral geographical and cultura...

The study aims to estimate an international reserves demand model for China using economic growth, propensity to import, real effective exchange rate and trade openness variables for quarterly period spanning from 1985Q1 to 2014Q4.The bounds testing technique to cointegration is used to test for a long run relationship, while the autoregressive distributed lag approach is used to estimate short...