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All Journal Indonesian Journal of Economics, Social, and Humanities
Lim Thye Goh
Inti International College Subang
Humanities Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

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The Effect of Trade Openness on Income Inequality with the Role of Institutional Quality Lim Thye Goh; Siong Hook Law
Indonesian Journal of Economics, Social, and Humanities Vol 1 No 2 (2019)
Publisher : Lembaga Penelitian dan Pengabdian kepada Masyarakat Universitas Riau

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31258/ijesh.1.2.65-76

Abstract

This study investigates the effect of trade openness on income inequality using the panel system generalised method of moments (GMM). The sample countries consist of 65 developed and developing countries and the time period covers from 1984 to 2012. This study also provides new evidence that sheds light on the role of institutional quality in influencing the effectof trade openness on income inequality. The empirical results reveal that trade openness tends to increase income inequality. In addition, the marginal effect also revealed that institutional quality has a corrective effect on the trade openness – income inequality nexus.
Co-Authors Siong Hook Law