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Income Inequality and Trade Protection - Does the Sector Matter?

Bjurling, Amanda LU (2015) NEKN01 20151
Department 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)
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author
Bjurling, Amanda LU
supervisor
organization
course
NEKN01 20151
year
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},
  keyword      = {sectorial protection.,middle-income countries,trade protection,globalization,Inequality},
  language     = {eng},
  note         = {Student Paper},
  title        = {Income Inequality and Trade Protection - Does the Sector Matter?},
  year         = {2015},
}