in Economic Growth and the Structure of Long Run Development,
Luigi L. Pasinetti and Robert M. Solow (eds.), London: Macmillan, 45-64, 1994.



INCOME DISPARITY AMONG COUNTRIES
AND THE EFFECTS OF FREER TRADE


Dan Ben-David

 

ABSTRACT

This paper examines the convergence issue from the perspective of trade liberalization's impact on the process. While unconditional income convergence among countries is not very common, it does appear to be an appropriate description of income behavior within groups that liberalized trade. Furthermore, the convergence seems to be closely linked to the timing of liberalization. Implementation of extensive trade reform coincides with reductions in income differentials that had been relatively steady prior to the liberalizations. Also, different periods of liberalization coincide with different periods of convergence.  

 

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