The Inequality Adjusted Gains from Trade: Evidence from Developing Countries

This volume examines the relationship between trade liberalization policies and income inequality in developing countries, using survey data for 54 countries to quantify the inequality-adjusted welfare gains from trade. It discusses the gains from trade and their distribution, evaluates the trade-off between income gains and inequality costs, and presents robustness tests.

Format: Paperback / softback
Length: 155 pages
Publication date: 10 February 2023
Publisher: Springer Nature Switzerland AG

This comprehensive volume delves into the intricate relationship between trade liberalization policies and income inequality in developing countries. Drawing upon extensive survey data from 54 developing nations, the book explores the potential trade-off between the economic benefits of trade and their distribution among different segments of society. Through meticulous analysis, it quantifies the inequality-adjusted welfare gains from trade, shedding light on the potential benefits and challenges associated with global economic integration.

The book begins with an introduction that provides a framework for understanding the relationship between trade and inequality. Chapter 2 introduces the model and derives the formulas that quantify the welfare effects of trade policy. Chapter 3 employs the tariff data and survey data to estimate these welfare effects in 54 countries, providing a detailed empirical basis for the subsequent chapters.

Chapter 4 delves into the gains from trade and their distribution across different groups of society. It examines the impact of trade on employment, wages, and poverty levels, as well as the distributional consequences of trade liberalization. Chapter 5 evaluates and quantifies the trade-off between income gains and inequality costs of trade. It explores the potential trade-offs between economic growth and social welfare, and assesses the impact of trade policies on income inequality.

Chapter 6 presents robustness tests and results from alternative models of the impacts of trade. It examines the sensitivity of the findings to different assumptions and methodologies, ensuring the reliability of the conclusions. The last chapter reviews the Household Impacts of Trade database and dashboard, a valuable resource for researchers and policymakers interested in replicating and simulating agricultural tariff policy shocks.

This volume offers a valuable contribution to the field of economic inequality, development, and international trade. It provides a comprehensive empirical analysis of the effects of trade policy on inequality in developing countries, offering insights into the potential benefits and challenges of global economic integration. The book will be of interest to researchers, students, policymakers, and anyone seeking to understand the complex dynamics between trade, inequality, and poverty in the developing world.

Weight: 267g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030930622
Edition number: 1st ed. 2022