Trade Liberalization and Income Inequality in India: A Poisson Distributed-Lag Analysis

8 Pages Posted: 24 Dec 2008

See all articles by Jean H. P. Paelinck

Jean H. P. Paelinck

Erasmus University Rotterdam (EUR) - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Kenneth A. Reinert

George Mason University - School of Policy, Government, and International Affairs; Kalamazoo College

Roger R. Stough

George Mason University - School of Policy, Government, and International Affairs

Date Written: December, 22 2008

Abstract

This paper addresses the relationship between trade liberalization and income inequality among Indian states using a Poisson distributed-lag analysis. Two measures of income inequality are considered: the Gini coefficient and the coefficient of variation. Trade liberalization is proxied using export growth. Results indicate that there is a different pattern of responses in inequality to export growth between rural and urban households. Rural inequality tends to be more responsive in the hoped-for direction than urban inequality.

Keywords: Trade Liberalization, Income Inequality, Poisson Distributed Lag, India

JEL Classification: D63, F13, F14

Suggested Citation

Paelinck, Jean H. P. and Reinert, Kenneth A. and Stough, Roger R., Trade Liberalization and Income Inequality in India: A Poisson Distributed-Lag Analysis (December, 22 2008). Applied Econometrics and International Development, Vol. 8, No. 2, 2008, Available at SSRN: https://ssrn.com/abstract=1319422

Jean H. P. Paelinck (Contact Author)

Erasmus University Rotterdam (EUR) - Department of Economics ( email )

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CESifo (Center for Economic Studies and Ifo Institute)

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Kenneth A. Reinert

George Mason University - School of Policy, Government, and International Affairs ( email )

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Kalamazoo College ( email )

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Roger R. Stough

George Mason University - School of Policy, Government, and International Affairs ( email )

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