KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Income Inequality as a Determinant of Trade Flows*
() and Désirée Nilsson
Abstract: 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.
Keywords: income inequality; trade flows; (follow links to similar papers)
JEL-Codes: D31; F10; (follow links to similar papers)
28 pages, September 22, 2006
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom