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Non-gravity trade

Author

Listed:
  • Markus Brueckner
  • Ngo Van Long
  • Joaquin Vespignani
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.

Suggested Citation

  • Markus Brueckner & Ngo Van Long & Joaquin Vespignani, 2020. "Non-gravity trade," CAMA Working Papers 2020-52, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2020-52
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    More about this item

    Keywords

    Non-Gravity Trade; Inequality; Education;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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