Arbeitspapier

Threshold and interaction effects in the trade, growth, and inequality relationship

This paper examines the relationship between trade (exports), growth, and inequality, using a panel of 100 countries over 30 years (1980 to 2010). As there is no clear theoretical relationship between trade (exports) and inequality, and as inequality can be considered a proxy for 'governance quality', the paper also tests for a threshold in inequality for the effect of trade (exports) on growth. The findings are that in general trade openness advances growth while inequality reduces growth. However, when we identify an inequality threshold, we find that inequality is positively associated with growth if below the threshold (low inequality) but negative above the threshold, whereas trade has a positive impact once the threshold is allowed for. Thus, trade generally promotes growth and relatively high inequality retards growth.

ISBN
978-92-9230-894-0
Sprache
Englisch

Erschienen in
Series: WIDER Working Paper ; No. 2015/009

Klassifikation
Wirtschaft
Trade: General
General Welfare; Well-Being
Economic Growth and Aggregate Productivity: General
Thema
trade
growth
inequality
threshold effects

Ereignis
Geistige Schöpfung
(wer)
Leyaro, Vincent
Ereignis
Veröffentlichung
(wer)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(wo)
Helsinki
(wann)
2015

DOI
doi:10.35188/UNU-WIDER/2015/894-0
Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Leyaro, Vincent
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Entstanden

  • 2015

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