Article
Growth and income inequality in OECD countries: Trade and Financial Integration
Journal of Global Economy, Trade and International Business
(2021)
Abstract
In this paper, we investigate the impact of trade and financial integration on economic growth and income inequality in 35 OECD countries over the period 1995-2016. Our contribution to the empirical literature is threefold: i) we disentangle the impact of economic integration in short and long run using an error correction model applied to panel data; ii) we differentiate estimates for low, middle and high income groups of countries and iii) we evaluate the impact on growth and inequality of global financial crisis, institutional quality and trade agreements. Our results show that trade integration was positively associated with Gdp growth per capita and negatively with inequality. The impact of financial integration was mixed. We find a positive relationship between financial integration and growth in the short run for middle income countries and a negative linkage with income inequality in the long run in low income countries.
Keywords
- Trade integration,
- Income inequality,
- Panel data analysis
Disciplines
Publication Date
Winter January 15, 2021
DOI
10.47509/JGETIB.1.1.2021.1-24
Citation Information
Roberta De Santis and Enrico D'Elia. "Growth and income inequality in OECD countries: Trade and Financial Integration" Journal of Global Economy, Trade and International Business Vol. 1 Iss. 1 (2021) p. 1 - 24 Available at: http://works.bepress.com/roberta_de_santis/50/