Indonesian Journal of Economics, Social, and Humanities
Vol 1 No 2 (2019)

The Effect of Trade Openness on Income Inequality with the Role of Institutional Quality

Lim Thye Goh (Inti International College Subang)
Siong Hook Law (Universiti Putra Malaysia)

Article Info

Publish Date
04 Oct 2019

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.

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Journal Info
Indonesian Journal of Economics, Social, and Humanities
Website

Abbrev

ijesh

Publisher

Universitas Riau

Subject

Humanities Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

Description

Indonesian Journal of Economics, Social, and Humanities (IJESH) is a peer-reviewed academic journal of studies in the field of Economics, Social, and Humanities studies, both theories and practices published biannually in January and July by Research and Community Service Institution of Universitas ...