Trade Liberalization and Income Equalization: A Long-Run Perspective

An examination of the impact of trade reform on the behavior of income differentials among countries provides the setting for the utilization of an income convergence test that differs from the conventional cross-country regressions. The existence, or non-existence, of convergence involves joint estimation of augmented Dickey-Fuller type equations using seemingly unrelated regression (SUR) techniques. Monte Carlo simulations are used to calculate the critical values which are in turn used to determine the significance of convergence. The findings here provide support for a link between trade liberalization and income convergence.


Issue Date:
1995-11
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/275610
Language:
English
Total Pages:
23
Series Statement:
Working Paper No. 42-95




 Record created 2018-08-01, last modified 2020-10-28

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