Income Inequality in the South–South Integration

Abstract

Some of the findings from new trade and economic geography theory are quite critical concerning the South-South agreements. This study contributes to the discussion by means of different empirical analyses of a representative set of South-South integrations. The income developments of its member states are studied with a special focus on income dispersion between and within member states. The results show that income dispersion has slightly decreased, within and between member states. The findings are placed in relation to growth models and beta convergence as other studies have found ambivalent results for growth and convergence in South-South integration areas.