Trade and Income Inequality in Developing Countries

Globalisation, accounting and developing countries

“…through sales of privatised companies and regulatory capture. SAPs had little success: on average, the performance of debtor country economies lagged behind those of the DCs without IMF loans (Welch & Oringer, 1998); deregulation and suppression of trade barriers could erode tax bases (Aizenman & Jinjarak, 2009); wages did not converge towards those in developed countries (Rama, 2002); labour's share of national income declined; changes in labour institutions (such as eroded minimum wages and trade union powers) contributed to greater inequality (Cornia, 1999); poverty and unemployment increased (Stiglitz, 2002); trade with developed countries lowered incomes (Meschi & Vivarelli, 2009); local democracy was diminished;…”

Revisiting the Effects of IMF Programs on Poverty and Inequality

“…the recent empirical literature about the effects of trade liberalization on poverty shows that trade liberalization has a positive impact on poverty reduction, but leads to higher inequality. Looking at the effects of trade on inequality in more detail there is evidence that trade with high income countries worsens the income distribution of middle income countries while it has no effect on the income distribution of low income countries (Meschi & Vivarelli 2009). …”

“…Table 8 summarizes the results of the model averaged estimations 43 In comparison to Meschi & Vivarelli (2009) we lack data to control for the origin of imports and the destination of exports to take into account the development status of the trading partner. Meschi & Vivarelli (2009) find that trade with industrialized countries worsens the income distribution of middle income countries, while trade with other developing countries leads to an improvement. 44 Meschi & Vivarelli (2009) find a deterioration in income equality due to high levels of inflation.…”

Drivers and impacts in the globalization of corporate R&D: an introduction based on the European experience

“…'open innovation' in terms of software industry); (2) the increasing importance of R&D cooperation across firms (see Veugelers, 1997;Cassiman and Veugelers, 2002;Piga and Vivarelli, 2004), which renders more likely and profitable the emergence of R&D complementarities between firms and firms' divisions located in different areas of the world; and (3) the increasing availability of skilled labor in emerging economies like Brazil, Russia, India, and China (BRIC's) and EU new member states (see Wood, 1994;Wood and Ridao-Cano, 1999;Meschi and Vivarelli, 2009).…”