Trade and Regional Inequality

This paper examines the relationship between openness and within-country regional inequality across 28 countries over the period 1975-2005, paying special attention to whether increases in global trade affect the developed and developing world diff...

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Main Author: Rodríguez-Pose, Andrés
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
GDP
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100624092218
http://hdl.handle.net/10986/3833
id okr-10986-3833
recordtype oai_dc
spelling okr-10986-38332021-04-23T14:02:13Z Trade and Regional Inequality Rodríguez-Pose, Andrés AGRICULTURE BARRIER BOND BORDER REGIONS CENTRAL PLANNING CHANGES IN TRADE COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPARATIVE ECONOMICS COMPETITIVENESS COUNTRY DUMMIES COUNTRY FIXED EFFECTS CUSTOMS DATA AVAILABILITY DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DIMINISHING RETURNS DISTRIBUTION OF INCOME DYNAMIC ANALYSIS DYNAMIC ECONOMIES ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC REFORM ENTRY POINTS EQUILIBRIUM EXPORT MARKET EXPORTS EXTERNAL TRADE EXTERNALITIES FOREIGN DIRECT INVESTMENT FOREIGN MARKET FOREIGN MARKETS FOREIGN TRADE GDP GDP PER CAPITA GINI COEFFICIENT GLOBAL INTEGRATION GLOBAL MARKET GLOBAL TRADE GLOBALIZATION GOVERNMENT INTERVENTION GROWTH POLICIES HUMAN CAPITAL IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPORT COMPETITION IMPORTS INCOME INCOME DISTRIBUTION INCOME GROUP INCOME INEQUALITY INDUSTRIAL COUNTRIES INEQUALITY MEASURES INSTITUTIONAL CAPACITY INTERNATIONAL MARKET INTERNATIONAL ORGANIZATIONS INTERNATIONAL TRADE LAGGING REGIONS MACROECONOMIC POLICIES MARKET INTEGRATION MIDDLE INCOME COUNTRIES MIDDLE INCOME COUNTRY MIDDLE-INCOME COUNTRIES NATIONAL DEVELOPMENT OPENNESS PARTICULAR COUNTRY POOR MARKET ACCESS POOR REGIONS POORER REGIONS POST-REFORM POVERTY REDUCTION POWER PARITIES PROSPEROUS REGIONS PUBLIC POLICIES PURCHASING POWER REAL GDP REAL INCOME REGIONAL CONVERGENCE REGIONAL DATA REGIONAL DIFFERENCES REGIONAL DISPARITIES REGIONAL GROWTH REGIONAL GROWTH RATES REGIONAL INCOME REGIONAL INEQUALITIES REGIONAL INEQUALITY REGIONAL LABOR REGIONAL MARKET REGIONAL PERFORMANCE REGIONAL POLICY REGIONAL POPULATION REGIONAL SCIENCE REGIONAL TRANSPORT REGIONAL VARIATION RENT SEEKING RETAIL TRADE SPATIAL DIMENSION SPATIAL DISTRIBUTION SPATIAL IMPACT SPATIAL INEQUALITIES SPATIAL INEQUALITY SPATIAL PATTERNS SPATIAL STRUCTURE SPECIALIZATION STATIC ANALYSIS THIRD WORLD TRADE EFFECT TRADE FLOWS TRADE LIBERALIZATION TRADE MORE TRADE OPENNESS TRADE PATTERNS TRADE POLICIES TRADE POLICY TRADE REGIMES TRADE ROUTES TRANSACTION COSTS TRANSITION ECONOMY TRANSPORT COSTS WORKER MOBILITY WORLD DEVELOPMENT INDICATORS WORLD ECONOMY This paper examines the relationship between openness and within-country regional inequality across 28 countries over the period 1975-2005, paying special attention to whether increases in global trade affect the developed and developing world differently. Using a combination of static and dynamic panel data analysis, we find that while increases in trade per se do not lead to greater territorial polarization, in combination with certain country-specific conditions, trade has a positive and significant association with regional inequality. In particular, states with higher inter-regional differences in sector endowments, a lower share of government expenditure, and a combination of high internal transaction costs with a higher degree of coincidence between the regional income distribution and regional foreign market access positions have experienced the greatest rise in territorial inequality when exposed to greater trade flows. This means that changes in trade regimes have had a more polarizing effect in low and middle-income countries, whose structural features tend to potentiate the trade effect and whose levels of internal spatial inequality are, on average, significantly higher than in high-income countries. 2012-03-19T18:40:37Z 2012-03-19T18:40:37Z 2010-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100624092218 http://hdl.handle.net/10986/3833 English Policy Research working paper ; no. WPS 5347 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGRICULTURE
BARRIER
BOND
BORDER REGIONS
CENTRAL PLANNING
CHANGES IN TRADE
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGES
COMPARATIVE ECONOMICS
COMPETITIVENESS
COUNTRY DUMMIES
COUNTRY FIXED EFFECTS
CUSTOMS
DATA AVAILABILITY
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPMENT ECONOMICS
DIMINISHING RETURNS
DISTRIBUTION OF INCOME
DYNAMIC ANALYSIS
DYNAMIC ECONOMIES
ECONOMETRIC ANALYSIS
ECONOMETRICS
ECONOMIC DEVELOPMENT
ECONOMIC GEOGRAPHY
ECONOMIC GROWTH
ECONOMIC INTEGRATION
ECONOMIC REFORM
ENTRY POINTS
EQUILIBRIUM
EXPORT MARKET
EXPORTS
EXTERNAL TRADE
EXTERNALITIES
FOREIGN DIRECT INVESTMENT
FOREIGN MARKET
FOREIGN MARKETS
FOREIGN TRADE
GDP
GDP PER CAPITA
GINI COEFFICIENT
GLOBAL INTEGRATION
GLOBAL MARKET
GLOBAL TRADE
GLOBALIZATION
GOVERNMENT INTERVENTION
GROWTH POLICIES
HUMAN CAPITAL
IMPACT OF TRADE
IMPACT OF TRADE LIBERALIZATION
IMPORT COMPETITION
IMPORTS
INCOME
INCOME DISTRIBUTION
INCOME GROUP
INCOME INEQUALITY
INDUSTRIAL COUNTRIES
INEQUALITY MEASURES
INSTITUTIONAL CAPACITY
INTERNATIONAL MARKET
INTERNATIONAL ORGANIZATIONS
INTERNATIONAL TRADE
LAGGING REGIONS
MACROECONOMIC POLICIES
MARKET INTEGRATION
MIDDLE INCOME COUNTRIES
MIDDLE INCOME COUNTRY
MIDDLE-INCOME COUNTRIES
NATIONAL DEVELOPMENT
OPENNESS
PARTICULAR COUNTRY
POOR MARKET ACCESS
POOR REGIONS
POORER REGIONS
POST-REFORM
POVERTY REDUCTION
POWER PARITIES
PROSPEROUS REGIONS
PUBLIC POLICIES
PURCHASING POWER
REAL GDP
REAL INCOME
REGIONAL CONVERGENCE
REGIONAL DATA
REGIONAL DIFFERENCES
REGIONAL DISPARITIES
REGIONAL GROWTH
REGIONAL GROWTH RATES
REGIONAL INCOME
REGIONAL INEQUALITIES
REGIONAL INEQUALITY
REGIONAL LABOR
REGIONAL MARKET
REGIONAL PERFORMANCE
REGIONAL POLICY
REGIONAL POPULATION
REGIONAL SCIENCE
REGIONAL TRANSPORT
REGIONAL VARIATION
RENT SEEKING
RETAIL TRADE
SPATIAL DIMENSION
SPATIAL DISTRIBUTION
SPATIAL IMPACT
SPATIAL INEQUALITIES
SPATIAL INEQUALITY
SPATIAL PATTERNS
SPATIAL STRUCTURE
SPECIALIZATION
STATIC ANALYSIS
THIRD WORLD
TRADE EFFECT
TRADE FLOWS
TRADE LIBERALIZATION
TRADE MORE
TRADE OPENNESS
TRADE PATTERNS
TRADE POLICIES
TRADE POLICY
TRADE REGIMES
TRADE ROUTES
TRANSACTION COSTS
TRANSITION ECONOMY
TRANSPORT COSTS
WORKER MOBILITY
WORLD DEVELOPMENT INDICATORS
WORLD ECONOMY
spellingShingle AGRICULTURE
BARRIER
BOND
BORDER REGIONS
CENTRAL PLANNING
CHANGES IN TRADE
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGES
COMPARATIVE ECONOMICS
COMPETITIVENESS
COUNTRY DUMMIES
COUNTRY FIXED EFFECTS
CUSTOMS
DATA AVAILABILITY
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPMENT ECONOMICS
DIMINISHING RETURNS
DISTRIBUTION OF INCOME
DYNAMIC ANALYSIS
DYNAMIC ECONOMIES
ECONOMETRIC ANALYSIS
ECONOMETRICS
ECONOMIC DEVELOPMENT
ECONOMIC GEOGRAPHY
ECONOMIC GROWTH
ECONOMIC INTEGRATION
ECONOMIC REFORM
ENTRY POINTS
EQUILIBRIUM
EXPORT MARKET
EXPORTS
EXTERNAL TRADE
EXTERNALITIES
FOREIGN DIRECT INVESTMENT
FOREIGN MARKET
FOREIGN MARKETS
FOREIGN TRADE
GDP
GDP PER CAPITA
GINI COEFFICIENT
GLOBAL INTEGRATION
GLOBAL MARKET
GLOBAL TRADE
GLOBALIZATION
GOVERNMENT INTERVENTION
GROWTH POLICIES
HUMAN CAPITAL
IMPACT OF TRADE
IMPACT OF TRADE LIBERALIZATION
IMPORT COMPETITION
IMPORTS
INCOME
INCOME DISTRIBUTION
INCOME GROUP
INCOME INEQUALITY
INDUSTRIAL COUNTRIES
INEQUALITY MEASURES
INSTITUTIONAL CAPACITY
INTERNATIONAL MARKET
INTERNATIONAL ORGANIZATIONS
INTERNATIONAL TRADE
LAGGING REGIONS
MACROECONOMIC POLICIES
MARKET INTEGRATION
MIDDLE INCOME COUNTRIES
MIDDLE INCOME COUNTRY
MIDDLE-INCOME COUNTRIES
NATIONAL DEVELOPMENT
OPENNESS
PARTICULAR COUNTRY
POOR MARKET ACCESS
POOR REGIONS
POORER REGIONS
POST-REFORM
POVERTY REDUCTION
POWER PARITIES
PROSPEROUS REGIONS
PUBLIC POLICIES
PURCHASING POWER
REAL GDP
REAL INCOME
REGIONAL CONVERGENCE
REGIONAL DATA
REGIONAL DIFFERENCES
REGIONAL DISPARITIES
REGIONAL GROWTH
REGIONAL GROWTH RATES
REGIONAL INCOME
REGIONAL INEQUALITIES
REGIONAL INEQUALITY
REGIONAL LABOR
REGIONAL MARKET
REGIONAL PERFORMANCE
REGIONAL POLICY
REGIONAL POPULATION
REGIONAL SCIENCE
REGIONAL TRANSPORT
REGIONAL VARIATION
RENT SEEKING
RETAIL TRADE
SPATIAL DIMENSION
SPATIAL DISTRIBUTION
SPATIAL IMPACT
SPATIAL INEQUALITIES
SPATIAL INEQUALITY
SPATIAL PATTERNS
SPATIAL STRUCTURE
SPECIALIZATION
STATIC ANALYSIS
THIRD WORLD
TRADE EFFECT
TRADE FLOWS
TRADE LIBERALIZATION
TRADE MORE
TRADE OPENNESS
TRADE PATTERNS
TRADE POLICIES
TRADE POLICY
TRADE REGIMES
TRADE ROUTES
TRANSACTION COSTS
TRANSITION ECONOMY
TRANSPORT COSTS
WORKER MOBILITY
WORLD DEVELOPMENT INDICATORS
WORLD ECONOMY
Rodríguez-Pose, Andrés
Trade and Regional Inequality
geographic_facet The World Region
The World Region
relation Policy Research working paper ; no. WPS 5347
description This paper examines the relationship between openness and within-country regional inequality across 28 countries over the period 1975-2005, paying special attention to whether increases in global trade affect the developed and developing world differently. Using a combination of static and dynamic panel data analysis, we find that while increases in trade per se do not lead to greater territorial polarization, in combination with certain country-specific conditions, trade has a positive and significant association with regional inequality. In particular, states with higher inter-regional differences in sector endowments, a lower share of government expenditure, and a combination of high internal transaction costs with a higher degree of coincidence between the regional income distribution and regional foreign market access positions have experienced the greatest rise in territorial inequality when exposed to greater trade flows. This means that changes in trade regimes have had a more polarizing effect in low and middle-income countries, whose structural features tend to potentiate the trade effect and whose levels of internal spatial inequality are, on average, significantly higher than in high-income countries.
format Publications & Research :: Policy Research Working Paper
author Rodríguez-Pose, Andrés
author_facet Rodríguez-Pose, Andrés
author_sort Rodríguez-Pose, Andrés
title Trade and Regional Inequality
title_short Trade and Regional Inequality
title_full Trade and Regional Inequality
title_fullStr Trade and Regional Inequality
title_full_unstemmed Trade and Regional Inequality
title_sort trade and regional inequality
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100624092218
http://hdl.handle.net/10986/3833
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