Abstract

MELO-BAYONA, Karol-Ximena; ARAQUE-CASTRO, María-Jimena  and  RANGEL-QUINONEZ, Henry-Sebastián. Relationship between Economic Openness and Income Inequality between 2012 and 2020. Ens. Econ. [online]. 2022, vol.32, n.61, pp.102-123.  Epub Mar 22, 2023. ISSN 0121-117X.  https://doi.org/10.15446/ede.v32n61.99918.

In recent years, thanks to the boom in international trade, the generation of wealth has increased. However, the latter does not seem to have been spread equally across all segments of the population. This article presents econometric evidence of the relationship of the level of international trade with intra-country income inequality for 150 countries on five continents over the period 2012-2020. The proposed models are of the fixed and random effects panel type controlled by continent. Among the main results are that each of the regions show different effects between the level of international trade and intra-country income inequality. For the year 2020, the effects of Covid-19 on inequality are not decisive, since there is still not enough public data to measure the effect of the pandemic quantitatively, even so it can be concluded, from secondary sources, that there was an increase in income inequality in the countries because of the confinement.

Keywords : Gini coefficient; economic openness; foreign trade; panel data.

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