North–South trade and income inequalityInternational Review of Economics and Finance
Publication VersionAccepted Manuscript
AbstractThis paper investigates the effects of North–South trade on international income inequality. While empirical studies suggest that trade liberalization encourages income convergence and reduces the per capita income gap between poor and rich countries, North–South trade is shown to increase the income gap between the two regions. On the other hand, trade liberalization by either region increases the welfare of both regions, and does not necessarily reduce the gap in “real income” or utility.
Copyright OwnerElsevier Inc.
Citation InformationE. Kwan Choi. "North–South trade and income inequality" International Review of Economics and Finance Vol. 16 Iss. 3 (2007) p. 347 - 356
Available at: http://works.bepress.com/ekwan-choi/16/