International Journal of Management, Accounting and Economics
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Volume 1, No. 1, August 2014 Pages: 1 - 14
Investigating Relationship between Trade and Income Inequalities
Monireh Dizaji , Arash Ketabforoush Badri
This paper investigates the relationship between trade and regional income inequalities in the period 2001-2010 using panel data for 18 selected developing countries. The results show that trade has a significant and negative effect on regional income inequalities, so that an increase of 1 percent of its value, regional income inequalities 0.09 percent decrease. Also, GDP per capita has a negative impact on regional income inequalities in studied countries. However, the population and agriculture value added have a positive effect on regional income inequalities. It can be said that a 1 percent increase in the variables, respectively, regional income inequalities 0.16 and 0.21 increased.
Trade, income, income inequalities, panel data.
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