International Trade, Geographic Heterogeneity and Interregional Inequality
Research output: Contribution to journal › Research article › Contributed › peer-review
Contributors
Abstract
We study the effect of international trade on interregional income inequality from 1992 to 2012 in the majority of countries worldwide using satellite night-light-based inequality proxies. For our analysis, we develop novel indicators for within-country heterogeneity in trade costs that are based on exogenous geographical features. In order to deal with potential endogeneity issues, we apply a gravity-style instrument that utilizes the occurrence of large natural disasters striking trade partners, as well as a Bartik-style instrument. In contrast to previous studies, our IV estimates reveal that international trade aggravates economic disparities only in those countries that have a higher within-country heterogeneity in terms of their access to the world market and their within-country trade costs.
Details
Original language | English |
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Article number | 103427 |
Journal | European Economic Review |
Volume | 127 |
Issue number | C |
Publication status | Published - 2020 |
Peer-reviewed | Yes |
External IDs
Scopus | 85085476604 |
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ORCID | /0000-0002-9937-8753/work/142243169 |
Keywords
Sustainable Development Goals
ASJC Scopus subject areas
Keywords
- interregional inequality, Spatial inequality trade, Trade costs, Heterogeneous geography, Gravity model, Panel data, Interregional inequality, Spatial inequality trade, Trade costs, Heterogeneous geography, Gravity model, Panel data