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: Hardback
Length: 155 pages
Publication date: 10 February 2022
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-offs between the economic benefits of trade and their distribution among different segments of society. Through meticulous analysis, it quantifies the inequality-adjusted welfare gains resulting from trade, shedding light on the complex interplay between economic growth and social equity.

The book begins with an introductory chapter that provides a framework for understanding the model and its methodology. Chapter 2 delves into the theoretical foundations of the model, presenting 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 a diverse range of countries. Chapter 4 examines the distributional consequences of trade, highlighting both the potential benefits and challenges associated with increased trade openness. Chapter 5 evaluates and quantifies the trade-off between income gains and inequality costs associated with trade, providing insights into the potential trade-offs between economic growth and social welfare.

Chapter 6 presents robustness tests and alternative models to assess the impacts of trade policy on inequality. The final chapter introduces the Household Impacts of Trade database and dashboard, a valuable resource for researchers seeking to replicate and simulate agricultural tariff policy shocks. This comprehensive volume appeals to a wide audience, including scholars of economic inequality, development, international trade, and policymakers interested in understanding the inequality and poverty consequences of trade policy. By offering a thorough empirical analysis, it contributes to our understanding of the complex dynamics between trade, inequality, and social well-being in developing countries.

Weight: 424g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030930592
Edition number: 1st ed. 2022