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Non-gravity trade

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posted on 2023-05-27, 23:40 authored by Brueckner, M, Long, NV, Joaquin VespignaniJoaquin Vespignani
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.

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Department/School

Centre for Education

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University of Tasmania

Publication status

  • Published

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Hobart

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Copyright 2020 University of Tasmania Discussion Paper Series N 2020-04 JEL Codes: F1, E2

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  • Open

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