Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86605
Authors: 
Francois, J.
Rojas-Romagosa, H.
Year of Publication: 
2004
Series/Report no.: 
Tinbergen Institute Discussion Paper 04-051/2
Abstract: 
We explore the relationship between import protection and the household distribution of income. We first develop a general-equilibrium mapping from tariffs to household inequality measures. This also yields predictions for linkages between tariffs, development level, and observed household inequality. Working with a new dataset, we then examine crosscountry variation in inequality with respect to import protection. Results are consistent with predictions of the factor-intensity model of trade. Regression results suggest that import protection makes income distribution worse for countries in labor-intensive diversification cones. This relationship shifts to one of falling inequality as incomes rise and we move to capital-intensive diversification cones.
Subjects: 
trade
inequality
distribution of income
Atkinson index
Gini coefficient
globalization
tariffs
JEL: 
F13
D31
O15
Document Type: 
Working Paper

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