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Trade openness and spatial inequality in emerging countries

Ezcurra, Roberto and Rodríguez-Pose, Andrés (2014) Trade openness and spatial inequality in emerging countries. Spatial Economic Analysis, 9 (2). pp. 162-182. ISSN 1742-1772

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Abstract

Emerging world countries have experienced over the last two decades a significant change in their trade patterns. Bold trade reforms have been followed by rapid rises in international trade levels. However, despite these radical changes, we know remarkably little about how changes in trade patterns are affecting the evolution of regional inequality in the developing world. This paper addresses the link between trade openness and spatial inequality across 22 emerging countries over the period between 1990 and 2006. Our findings show that changes in international trade bring about a significant rise in within-country inequality across the developing world and that this impact is greatest in the poorest countries. This result is robust to the inclusion of a number of control variables, and to changes in the specification of the sample and in the measure used to quantify the level of regional disparities. Consequently, the increase in trade exposure across the emerging world, while possibly benefiting the countries involved in the process in aggregate terms, is generating winning and losing regions.

Item Type: Article
Official URL: http://www.tandfonline.com/toc/rsea20/current#.U3y...
Additional Information: © 2014 Regional Studies Association
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
Sets: Departments > European Institute
Departments > Geography and Environment
Research centres and groups > Spatial Economics Research Centre
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 21 May 2014 13:12
URL: http://eprints.lse.ac.uk/56806/

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