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Income Inequality as a Determinant of Trade Flows
Jönköping University, Jönköping International Business School, JIBS, Economics.
Jönköping University, Jönköping International Business School, JIBS, Economics.
2007 (English)In: International Journal of Applied Economics, ISSN 1548-0003, Vol. 4, no 1, p. 40-59Article in journal (Refereed) Published
Abstract [en]

Consumer studies have a long tradition of incorporating non-homothetic preferences in their models, whereas this has been very uncommon in studies of international trade. We use a model from Mitra and Trindade (2005) to set up a gravity model in which we include income distribution measures as explanatory variables for the exporting as well as for the importing countries. Our results indicate that non-homothetic preferences significantly affect both exports and imports.

Place, publisher, year, edition, pages
2007. Vol. 4, no 1, p. 40-59
Keyword [en]
International trade, income distribution, hon-homothetic preferences
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-3136OAI: oai:DiVA.org:hj-3136DiVA, id: diva2:33956
Available from: 2007-08-14 Created: 2007-08-14Bibliographically approved

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Bohman, HelenaNilsson, Désirée

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CiteExportLink to record
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