Income Inequality and Trade Protection - Does the Sector Matter?
(2015) NEKN01 20151Department of Economics
- Abstract
- According to traditional trade theory, trade reduces inequality between the rich and the poor. However, since the beginning of the 1980s, a constantly rise in within-country inequality has been observed in many developed and developing countries. With the rapidly increasing globalization during the same period in mind, a natural question to ask is whether the two phenomenon are linked. In this paper I investigate the links between trade protection and inequality for a panel of 26 middle-income countries during the period 2000-2012. I additionally examine whether the level of protection in specific industries is of importance for the relationship. I do this by using both an OLS model and an FE model. I find no evidence for the effect of... (More)
- According to traditional trade theory, trade reduces inequality between the rich and the poor. However, since the beginning of the 1980s, a constantly rise in within-country inequality has been observed in many developed and developing countries. With the rapidly increasing globalization during the same period in mind, a natural question to ask is whether the two phenomenon are linked. In this paper I investigate the links between trade protection and inequality for a panel of 26 middle-income countries during the period 2000-2012. I additionally examine whether the level of protection in specific industries is of importance for the relationship. I do this by using both an OLS model and an FE model. I find no evidence for the effect of general protection on inequality, although general trade is found to reduce inequality. Further, I find the effect of sectorial protection on inequality to strongly depend on the industry and region that is being considered. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/7856609
- author
- Bjurling, Amanda LU
- supervisor
- organization
- course
- NEKN01 20151
- year
- 2015
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- sectorial protection., middle-income countries, trade protection, globalization, Inequality
- language
- English
- id
- 7856609
- date added to LUP
- 2015-09-15 12:37:11
- date last changed
- 2015-09-15 12:37:11
@misc{7856609, abstract = {{According to traditional trade theory, trade reduces inequality between the rich and the poor. However, since the beginning of the 1980s, a constantly rise in within-country inequality has been observed in many developed and developing countries. With the rapidly increasing globalization during the same period in mind, a natural question to ask is whether the two phenomenon are linked. In this paper I investigate the links between trade protection and inequality for a panel of 26 middle-income countries during the period 2000-2012. I additionally examine whether the level of protection in specific industries is of importance for the relationship. I do this by using both an OLS model and an FE model. I find no evidence for the effect of general protection on inequality, although general trade is found to reduce inequality. Further, I find the effect of sectorial protection on inequality to strongly depend on the industry and region that is being considered.}}, author = {{Bjurling, Amanda}}, language = {{eng}}, note = {{Student Paper}}, title = {{Income Inequality and Trade Protection - Does the Sector Matter?}}, year = {{2015}}, }