Openness, Inequality, and Poverty : Endowments Matter

dc.creatorGourdon, Julien
dc.creatorMaystre, Nicolas
dc.creatorde Melo, Jaime
dc.date2012-06-18T21:40:04Z
dc.date2012-06-18T21:40:04Z
dc.date2006-08
dc.date.accessioned2026-07-01T01:27:16Z
dc.descriptionUsing tariffs as a measure of openness, the authors find consistent evidence that the conditional effects of trade liberalization on inequality are correlated with relative factor endowments. Trade liberalization is associated with increases in inequality in countries well-endowed in highly skilled workers and capital or with workers that have very low education levels and in countries relatively well-endowed in mining and fuels. Trade liberalization is associated with decreases in inequality in countries that are well-endowed with primary-educated labor. Similar results are also apparent when decile data are used instead of the usual Gini coefficient. The results are strongly supportive of the factor-proportions theory of trade and suggest that trade liberalization in poor countries where the share of the labor force with very low education levels (likely employed in nontradable activities) is high raises inequality. In the sample, countries with low education levels also have relatively scarce endowments of capital. Quantitatively capital scarcity is the dominating effect so that trade liberalization is accompanied by reduced income inequality in low-income countries. Within-country inequality is also positively correlated with measures of macroeconomic instability. Simulation results suggest that relatively small changes in inequality as measured by aggregate measures of inequality like the Gini coefficient are magnified when estimates are carried out using decile data.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2006/08/6962183/openness-inequality-poverty-endowments-matter
dc.identifierhttps://hdl.handle.net/10986/8372
dc.identifierhttps://doi.org/10.1596/1813-9450-3981
dc.identifier.urihttp://hdl.handle.net/123456789/418234
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper; No. 3981
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectADVERSE EFFECT
dc.subjectAGRICULTURE
dc.subjectAVERAGE GROWTH
dc.subjectAVERAGE INCOME
dc.subjectAVERAGE TARIFF
dc.subjectAVERAGE TARIFFS
dc.subjectBASIC EDUCATION
dc.subjectBLACK MARKET
dc.subjectBLACK MARKET PREMIUM
dc.subjectBORDER MEASURES
dc.subjectCAPITAL MARKETS
dc.subjectCHANGES IN TRADE
dc.subjectCIVIL LIBERTIES
dc.subjectCOUNTRY DUMMIES
dc.subjectCOUNTRY INEQUALITY
dc.subjectCROSS-COUNTRY STUDIES
dc.subjectCUSTOMS
dc.subjectDATA SET
dc.subjectDATA SETS
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDISTRIBUTIONAL IMPLICATIONS
dc.subjectEDUCATED PEOPLE
dc.subjectEDUCATION LEVEL
dc.subjectEXPLANATORY VARIABLE
dc.subjectFACTOR ENDOWMENTS
dc.subjectFACTOR PRICE
dc.subjectFACTORS OF PRODUCTION
dc.subjectFINANCIAL DEPTH
dc.subjectFIXED EFFECTS
dc.subjectFOREIGN EXCHANGE
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGINI COEFFICIENT
dc.subjectGINI INDEX
dc.subjectGROWTH LITERATURE
dc.subjectGROWTH SPELLS
dc.subjectHETEROSKEDASTICITY
dc.subjectHIGH TARIFFS
dc.subjectHOUSEHOLD INCOMES
dc.subjectHOUSEHOLD SURVEYS
dc.subjectHUMAN CAPITAL
dc.subjectIDIOSYNCRATIC FACTORS
dc.subjectIMPACT OF TRADE
dc.subjectIMPACT OF TRADE LIBERALIZATION
dc.subjectINCOME
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME GROWTH
dc.subjectINCOME INEQUALITY
dc.subjectINCOME INEQUALITY DATA
dc.subjectINCOME LEVELS
dc.subjectINCOME MEASURES
dc.subjectINCREASE INCOME INEQUALITY
dc.subjectINCREASING INEQUALITY
dc.subjectINCREASING WAGE
dc.subjectINEQUALITY DATA
dc.subjectINEQUALITY MEASURE
dc.subjectINEQUALITY MEASURES
dc.subjectINEQUALITY WILL
dc.subjectINTERNATIONAL TRADE
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLOW TARIFFS
dc.subjectLOW-INCOME COUNTRIES
dc.subjectMACROECONOMIC INSTABILITY
dc.subjectMACROECONOMIC VARIABLES
dc.subjectMARKET INTEGRATION
dc.subjectMEAN INCOME
dc.subjectMEAN INCOMES
dc.subjectMEASURE OF TRADE
dc.subjectMEASUREMENT ERROR
dc.subjectMEASUREMENT ERRORS
dc.subjectMIDDLE EAST
dc.subjectNATIONAL ACCOUNTS
dc.subjectNATIONAL INCOME
dc.subjectNATURAL RESOURCES
dc.subjectNET EXPORTS
dc.subjectNORTH AFRICA
dc.subjectOPEN ECONOMIES
dc.subjectOPENNESS
dc.subjectPOLICY CHANGES
dc.subjectPOLICY RESEARCH
dc.subjectPOOR COUNTRIES
dc.subjectPOSITIVE CORRELATION
dc.subjectPRICE CHANGES
dc.subjectPURCHASING POWER
dc.subjectREDUCTION IN TARIFFS
dc.subjectREGIONAL AVERAGES
dc.subjectREGIONAL GROUPINGS
dc.subjectREGIONAL LEVEL
dc.subjectRELATIVE IMPORTANCE
dc.subjectRELATIVE PRICES
dc.subjectRICH COUNTRIES
dc.subjectRISING INEQUALITY
dc.subjectSIGNIFICANT RELATIONSHIP
dc.subjectSKILL PREMIUM
dc.subjectSTABILIZATION POLICIES
dc.subjectSUB-SAHARAN AFRICA
dc.subjectTARIFF PROTECTION
dc.subjectTARIFF RATES
dc.subjectTARIFF REDUCTION
dc.subjectTARIFF REDUCTIONS
dc.subjectTARIFF REVENUES
dc.subjectTARIFF STRUCTURES
dc.subjectTERMS OF TRADE
dc.subjectTRADE BARRIERS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE LIBERALIZATION INCREASES
dc.subjectTRADE LIBERALIZATIONS
dc.subjectTRADE OPENNESS
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRADE REFORMS
dc.subjectTRADE REGIME
dc.subjectTRADED SECTOR
dc.subjectTRANSACTION COSTS
dc.subjectTRANSITION ECONOMIES
dc.subjectUNSKILLED LABOR
dc.subjectUNSKILLED WORKERS
dc.subjectVOLUME OF TRADE
dc.subjectWAGE GAP
dc.subjectWAGE INEQUALITY
dc.subjectWAGES
dc.subjectWORLD INCOME DISTRIBUTION
dc.subjectWORLD MARKETS
dc.titleOpenness, Inequality, and Poverty : Endowments Matter

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