Growth and Income Inequality казино joy in OECD Countries: Trade and Financial Openness.

 E. D’Elia&R. De Santis

Abstract

In this paper, we investigate the impact of trade and financial integrationon economic growth and income inequality in 35 OECD countries over the period 1995-2016. Our contribution to the empirical literature is threefold: i) we disentangle the impact of economic integration in short and long run using an error correction model applied to panel data; ii) we differentiate estimates for low, middle and high income groups of countries and iii) we evaluate the impact on growth and inequality of global financial crisis, institutional quality and trade agreements. Our results show that trade openness was positively associated with GDP growth per capita and negatively with inequality. The impact of financial integration was heterogeneous. We find a positive relationship between financial integration and growth in the short run for middle играть в онлайн казино бесплатно income countries and a negative linkage with income inequality in the long run in low income countries.