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Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ

Series Vol. 3 , 21 March 2023


Open Access | Article

Trade Globalization and Inequality: Evidence Across Economies

Jiaxuan Zhou * 1 , Jingru Xue 2 , Lanxin Liu 3
1 School of insurance, Central University of Finance and Economics, Beijing, 102206, China
2 China Academy of Public Finance and Public Policy, Central University of Finance and Economics, Beijing, 102206, China
3 China Academy of Public Finance and Public Policy, Central University of Finance and Economics, Beijing, 102206, China

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 3, 122-132
Published 21 March 2023. © 21 March 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Jiaxuan Zhou, Jingru Xue, Lanxin Liu. Trade Globalization and Inequality: Evidence Across Economies. AEMPS (2023) Vol. 3: 122-132. DOI: 10.54254/2754-1169/3/2022772.

Abstract

In recent years, trade globalization has experienced rapid growth, however, within many countries, income gap is also widening. Whether there exists causality needs further investigation. This work uses the panel of 166 countries during 1970-2018 and employs the exogeneous variation of trade globalization in the last period to explore its effect on income inequality. The paper finds trade globalization has a significantly positive effect on income inequality and it is robust when constructing instrument variables, considering long term effects or using changes in the regression. However, the effect varies in economies with different income and development levels, and technology, education, governance, policy and other factors may have important roles. Now, trade globalization is still a promising opportunity for all countries and each should develop discretionary policy to make the most of it.

Keywords

Inequality, Trade Globalization, Stolper–Samuelson Theorem

References

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ
ISBN (Print)
978-1-915371-15-7
ISBN (Online)
978-1-915371-16-4
Published Date
21 March 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/3/2022772
Copyright
21 March 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated