Scandinavian Working Papers in Economics
Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
No 73: Income Inequality as a Determinant of Trade Flows*
Helena Bohman () and Désirée Nilsson ()
Additional contact information
Helena Bohman: Jönköping International Business School, Postal: Jönköping University, P.O. Box 1026, SE-551 11 Jönköping,
Désirée Nilsson: Jönköping International Business School, Postal: Jönköping University, P.O. Box 1026, SE-551 11 Jönköping,
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
28 pages, September 22, 2006
Full text files
cesiswp73.pdf
- Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
- Home page for this series
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 ().
RePEc:hhs:cesisp:0073This page generated on 2024-09-13 22:14:26.