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North–South trade and income inequality
International Review of Economics and Finance
  • E. Kwan Choi, Iowa State University
Document Type
Publication Version
Accepted Manuscript
Publication Date
This 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.

NOTICE: this is the author’s version of a work that was accepted for publication in International Review of Economics and Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Review of Economics and Finance, [16, 3, (2007)] DOI: 10.1016/j.iref.2006.02.001

Copyright Owner
Elsevier Inc.
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Citation Information
E. Kwan Choi. "North–South trade and income inequality" International Review of Economics and Finance Vol. 16 Iss. 3 (2007) p. 347 - 356
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