Trade openness and income inequality in China and the SAARC Region

Zakaria, Muhammad; Fida, Bashir Ahmed

doi:10.1111/apel.12152

Cited by 16 publications

(7 citation statements)

References 30 publications

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“…Moreover, Anyanwu (2016) empirically shows that globalization (foreign direct investment and trade openness) also determines income inequality in Africa, especially in West Africa. Recently, several studies have investigated the relationship between foreign direct investment and income inequality (Chen, 2016; Loureiro, 2019; Mahutga & Bandelj, 2008; Wu & Hsu, 2012;) and the nexus between trade liberalization and income inequality (Bayar & Sezgin, 2017; Brueckner & Vespignani, 2017; Bukhari & Munir, 2016; Getachew, 2015; Jaumotte et al, 2013; Rivas, 2007; Topuz & Dağdemir, 2020; Weyl, 2016; Zakaria & Fida, 2016). To the best of our knowledge, two pieces of evidence have been supported by these studies.…”

Section: Introductionmentioning

confidence: 99%

Trade openness, FDI, and income inequality: Evidence from sub‐Saharan Africa

Han

Dossou

et al. 2021

African Development Review

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The motivation for this study stems from the United Nations Sustainable Development Goals (UN-SDGs) and their impact by 2030. The UN highlights 17 SDGs that address pertinent local and global issues, one of which-SDG-10-has been devoted to reducing inequality. This study investigates the nexus between trade openness, foreign direct investment (FDI), and income inequality in sub-Saharan Africa using panel data from 2000 to 2015 and the generalized method of moment (GMM) technique approach. The findings show that FDI and income have a negative, statistically significant relationship with income inequality, signifying that as FDI and income per capita increase, the level of income inequality decreases. However, trade openness, education, political stability, corruption, and rule of law have a positive, statistically significant relationship with inequality. This study, therefore, offers some recommendations that will help policymakers. First, develop good policies to attract more foreign investors, which will contribute to creating employment opportunities in the region. Second, create more infrastructures to provide good quality education. Third, implement a good policy to motivate local production which will contribute to creating jobs. Fourth, build a strong institution(s) to fight against corruption.

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Section: Introductionmentioning

confidence: 99%

Trade openness, FDI, and income inequality: Evidence from sub‐Saharan Africa

Han

Dossou

et al. 2021

African Development Review

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“…Following previous studies to capture the influence of trade integration, trade is represented by three measures of trade integration: trade openness, intra-export and intra-import. Trade openness is the most commonly used variable to assess trade integration in other studies (Furuoka et al, 2018;Selvarajan & Ab-Rahim, 2017;Tee et al, 2017;Ametoglo & Guo, 2016;Mahesh, 2016;Yenipazarli & Kucukkaya, 2016;Zakaria & Fida, 2016;Lee & McNelis, 2014;Jaumotte et al, 2013). To further examine the impact of export on reducing inequality, intra-export is split by sector of originagriculture, manufacturing and services.…”

Section: Data Methodologymentioning

confidence: 99%

“…Raychaudhuri and De (2016) carried out a cross country dynamic panel analysis on 14 Asian countries showed that openness leads to unequal distribution of income. Results from Mahesh (2016) based on BRIC countries, Zakaria and Fida (2016) on China and the South Asian Association for Regional Cooperation (SAARC) and Tee et al (2017) showed that an increased in volume of trade has worsened the distribution.…”

Section: Theories and Literature Reviewmentioning

confidence: 99%

Regional Economic Integration and Income Inequality in Selected ASEAN Countries

Ean¹,

Mansor²,

Ling³

2020

IJARBSS

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Widening income inequality in recent years has triggered an outpouring analysis and reflection on the causes of inequality. Economic cooperation demonstrated robust economic growth, reducing poverty but also accompanied by rising inequality. The income gap persists between ASEAN-5 (Indonesia, Malaysia, the Philippines, Singapore, Thailand) and the ASEAN-3 (Cambodia, Laos, Vietnam) has become a prominent issue and policy debate. Hence, this study aims to investigate the relationship of regional economic integration and income inequality by adopting a balanced panel analysis for selected ASEAN countries from 2005 to 2018. Trade and financial integration was evaluated to investigate the influence on inequality. Empirical findings showed that trade integration is more effective than financial integration in improving income distribution. Export activities from the manufacturing and service sectors help ASEAN-5, while the agricultural and manufacturing sectors help ASEAN-3 in narrowing income distribution. Therefore, integration policies to improve inequality should not be universally implied on countries with diverse economics structures and varied development activities.

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“…Ezcurra and Rodríguez-Pose (2014) argue that changes in international trade have led to significant increase in domestic inequality in developing countries, with this impact being highest in the poorest countries. Zakaria and Fida (2016) concluded that liberal trade policies increase income inequality in countries.…”

Section: Literature Reviewmentioning

confidence: 99%

The Investigation of the Relationship between Trade Openness and Income Inequality for BRICS-T Countries: Panel VAR Approach

HAN

2022

EPF Journal

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Gelişmekte olan ülkelerde liberal ekonomi politikalarının uygulanması, ticaret ve ekonomik büyüme arasındaki karşılıklı etkileşimi artırmıştır. Bu gelişme gelir farklılıklarında belirgin bir artışa yol açan önemli bir mekanizma olarak karşımıza çıkmaktadır. Bu çalışmada, Dünya’nın yükselen ekonomileri olarak ifade edilen BRICS-T ülkeleri için 1992-2019 yılları arasındaki veriler kullanılarak Panel Var analizi yöntemi ile gelir eşitsizliği ve ticari açıklık arasındaki ilişkinin incelenmesi amaçlanmaktadır. Analiz bulgularına göre ticari açıklığın artması, seçilen gelişmekte olan ülke grubunda gelir eşitsizliğinin artmasına neden olmaktadır. Diğer taraftan doğrudan yabancı yatırımların ve ekonomik büyümenin artması gelir dağılımındaki adaletsizliği azaltıcı bir etkiye sahiptir. Granger nedensellik testi sonuçları, panel VAR sonuçlarını desteklemektedir ve geri besleme ilişkisi olmaksızın ticari açıklık, gelir eşitsizliğinin tek yönlü nedenidir. Ayrıca gelir eşitsizliği, doğrudan yabancı yatırımlar ve ekonomik büyüme ile çift yönlü nedenselliğe sahiptir. Son olarak doğrudan yabancı yatırımlar ve ticari açıklık, ekonomik büyümenin tek yönlü nedenidir. Özellikle gelişmekte olan ülkelerde var olan ticarette serbestleşme politikalarının gelir eşitsizliğini artırması hipotezi bu çalışmada literatüre de uygun olarak desteklenmektedir. Hem ekonomik büyümeyi sağlamak hem de gelir eşitsizliğini azaltmaya katkıda bulunmak için daha fazla yabancı yatırımcıyı çekmek için politikalar geliştirilmelidir.

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Trade openness and income inequality in China and the SAARC Region

Cited by 16 publications

References 30 publications

Trade openness, FDI, and income inequality: Evidence from sub‐Saharan Africa

Trade openness, FDI, and income inequality: Evidence from sub‐Saharan Africa

Regional Economic Integration and Income Inequality in Selected ASEAN Countries

The Investigation of the Relationship between Trade Openness and Income Inequality for BRICS-T Countries: Panel VAR Approach

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