Revisiting the Link between Trade, Growth and Inequality: Lessons for Latin America and the Caribbean
IMF Working Papers, March 9, 2017
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- Revisiting the Link between Trade, Growth and Inequality: Lessons for Latin America and the Caribbean
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Bibliographic details
- Authors: Kimberly Beaton, Aliona Cebotari, Andras Komaromi
- Published: March 9, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475585551.001
Authors and publication
- Kimberly Beaton, Aliona Cebotari, Andras Komaromi
- March 9, 2017
- IMF Working Papers, Issue: 046; Series: Working Paper No. 2017/046
- Pages: 42
- DOI: https://doi.org/10.5089/9781475585551.001
- Stock No: WPIEA2017046
- ISBN: 9781475585551
- ISSN: 1018-5941
Objective and scope
- Revisit the relationship between international trade, economic growth and inequality with a focus on Latin America and the Caribbean.
- Combine two analytical approaches to extract lessons on the impact of trade liberalization on economic growth, growth structure, and inequality.
Methodology
- Cross-country panel framework:
- Analyze macroeconomic effects of international trade on economic growth and inequality.
- Consider the strength of trade connections and characteristics of countries’ export markets and products.
- Event studies:
- Examine past episodes of trade liberalization to extract general lessons on impacts on economic growth, its structure, and inequality.
Key findings
- Broad, consistent messages from both approaches:
- Trade openness and connectivity to the center of the trade network has substantial macroeconomic benefits.
- No statistically significant or economically sizable direct impact of trade on overall income inequality was found.
Subjects and keywords
- Subject: Economic integration, Exports, Income inequality, International trade, National accounts, Trade integration, Trade liberalization, Trade policy
- Keywords: Asia and Pacific, Caribbean, Exports, Global, Globalization, Growth, growth outcome, Income inequality, Inequality, Latin America, Liberalization, Trade, Trade integration, trade liberalization, Trade liberalization, trade network, trade openness, Trade policy, trade-growth regression, world trade network, WP
Revisiting the Link between Trade, Growth and Inequality: Lessons for Latin America and the Caribbean (IMF Working Paper No. 2017/046, March 9, 2017).