Date of Award

12-2015

Document Type

Thesis

Degree Name

Master of Arts (MA)

Legacy Department

Economics

Committee Member

Prof. Scott Baier, Committee Chair

Abstract

This paper investigates the impact of trade openness on country’s income distribution or income inequality on both developing and developed countries during the years 1960-2005. The data are grouped into 5 year (10 periods) with 86 countries in the sample. Also, I group countries into 8 regions to observe the changes in trade openness and income inequality during the study period. Using OLS regressions, the results show that increases in trade openness leads to a greater income inequality in overall countries. By running the regressions separately for developing and developed countries, the results indicate an interesting fact: while increases in trade openness increases income inequality in developing countries, it actually decreases income inequality in developed countries though the result is not significant.

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