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Non-gravity trade

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Brueckner, M, Long, NV and Vespignani, JL ORCID: 0000-0003-0265-4377 2020 , Non-gravity trade.

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Abstract

This paper examines the relationship between countries’ bilateral trade with the United States
that is not due to gravity (non-gravity trade) and the distribution of income within countries. In
countries where only a small share of the population are educated, an increase in non-gravity
trade is associated with a significant increase in income inequality. As education of the
population increases the correlation between non-gravity trade and income inequality becomes
smaller. Non-gravity trade has no significant effect on income inequality in countries that are
world leaders in education.

Item Type: Report (Discussion Paper)
Authors/Creators:Brueckner, M and Long, NV and Vespignani, JL
Keywords: non-gravity trade, inequality, education
Publisher: University of Tasmania
Copyright Information:

Copyright 2020 University of Tasmania

Additional Information:

Discussion Paper Series N 2020-04
JEL Codes: F1, E2

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