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    Structural Change, Trade, and Inequality: Some Cross-Country Evidence

    Roy, Rudra Prosad; Roy, Saikat Sinha | July 2017
    Abstract
    The process of transition from a low-income to a high-income country involves a structural transformation of the economy along with a change in the distribution of income and wealth in the economy. This study examines how this process of structural change impacts on inequality for a sample of advanced, emerging, and transition economies. Trade liberalization, through a reduction in tariff and removal of nontariff barriers, aids the process of structural transformation and simultaneously changes the income distribution in an economy. This study investigates whether structural change impacts inequality. Using a panel of 217 countries during the period 1991–2014 and the System GMM method of dynamic panel data analysis, it is found that the process of structural change increases income inequality, while trade liberalization and FDI inflows help to reduce it. Income distribution is found to be more equal to infrastructure development. The econometric results are robust and have important policy implications.
    Citation
    Roy, Rudra Prosad; Roy, Saikat Sinha. 2017. Structural Change, Trade, and Inequality: Some Cross-Country Evidence. © Asian Development Bank Institute. http://hdl.handle.net/11540/7625.
    Keywords
    Development Indicators
    Environmental Indicators
    Economic Indicators
    Educational Indicators
    Demographic Indicators
    Health Indicators
    Disadvantaged Groups
    Low Income Groups
    Socially Disadvantaged Children
    Rural Conditions
    Rural Development
    Social Conditions
    Urban Development
    Urban Sociology
    Alleviating Poverty
    Anti-Poverty
    Extreme Poverty
    Fight Against Poverty
    Global Poverty
    Health Aspects Of Poverty
    Indicators Of Poverty
    Participatory Poverty Assessment
    Poverty Eradication
    Poverty Analysis
    Poverty In Developing Countries
    Poverty Reduction Efforts
    Urban Poverty
    Development projects
    Physical infrastructure
    Soft infrastructure
    Infrastructure finance
    Infrastructure bonds
    Transport infrastructure
    Roads
    Highways
    Railways
    Ports
    Airports
    Pipelines
    Water supply
    Power production
    Power transmission
    Power distribution
    Telecommunications
    Infrastructure connectivity
    Cross border connectivity
    Poor
    Economic forecasting
    Health expectancy
    Social groups
    Political participation
    Distribution of income
    Inequality of income
    Developing countries
    Rural community development
    Mass society
    Social change
    Social policy
    Social stability
    Population
    Sustainable development
    Peasantry
    Urban policy
    Urban renewal
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    Citable URI
    http://hdl.handle.net/11540/7625
    Metadata
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    adbi-wp763.pdf (763.5Kb)
    Author
    Roy, Rudra Prosad
    Roy, Saikat Sinha
    Theme
    Poverty
    Infrastructure
    Labor Migration
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise