Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/223442
Authors: 
Brueckner, Markus
Long, Ngo Van
Vespignani, Joaquin
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8370
Abstract: 
This paper examines the relationship between countries’ bilateral trade with the United States that is not due to gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the population are educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As education of the population increases the correlation between non-gravity trade and income inequality becomes smaller. Non-gravity trade has no significant effect on income inequality in countries that are world leaders in education.
Subjects: 
non-gravity trade
inequality
education
JEL: 
F10
E20
Document Type: 
Working Paper

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