Abstract
Abstract. The paper is a short literature review that suggests that trade policy as opposed to general measures of openness does correlate with inequality. The review suggests that developing countries are not ready to fully integrate with global trade because significant segments of populations are unskilled whereas global trade patterns benefit only skilled or semi-skilled.
Keywords. Inequality, Integration, Trade Policy.
JEL. F10, F13, F19.References
Bardhan, P. (2003). Globalisation and limits to poverty Alleviation. Unpublished Draft. U.C. Berkeley. [Retrieved from].
Dollar, D., & Kraay, A. (2004). Trade, growth, and poverty. Economic Journal, 114(493). F22-F49. doi. 10.1111/j.0013-0133.2004.00186.x
Frankel, J., & Romer, D. (1999). Does trade cause growth?. American Economic Review, 89(3), 379-399. doi. 10.1257/aer.89.3.379
Mamoon, D. (2015). How may international trade affect poverty in a developing country setup? The inequality channel. International Journal of Economics and Empirical Research, 3(5), 230-244.
Mamoon, D., & Murshed, S.M. (2013). Education bias of trade liberalisation and wage inequality in developing countries, Journal of International Trade and Economic Development, 22(4), 572-604. doi. 10.1080/09638199.2011.589532
Rodriguez, F., & Rodrik, D. (2000). Trade policy and economic growth: A skeptic’s guide to the cross-national evidence. NBER Macroeconomics Annual, No.7081. doi. 10.3386/w7081
Rodrik, D., Subramanian, A., & Trebbi, F. (2002). Institutions rule: The primacy of institutions over geography and integration in economic development. NBER Working Paper, No.9305. doi. 10.3386/w9305