Investigating Relationship between Trade and Income Inequalities

Document Type: Original Research


1 Department of Economics, College of management, Economics and accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran

2 Department of Economics, College of Management, Economics and Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran


This paper investigates the relationship between trade and regional income inequalities in the period 2001-2010 using panel data for 18 selected developing countries. The results show that trade has a significant and negative effect on regional income inequalities, so that an increase of 1 percent of its value, regional income inequalities 0.09 percent decrease. Also, GDP per capita has a negative impact on regional income inequalities in studied countries. However, the population and agriculture value added have a positive
effect on regional income inequalities. It can be said that a 1 percent increase in the variables, respectively, regional income inequalities 0.16 and 0.21 increased.


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