Trade Liberalization, Poverty and Inequality Nexus: A Case Study of India

Journal Title: Asian Economic and Financial Review - Year 2011, Vol 1, Issue 3

Abstract

The paper attempted to see the relationship between trade liberalization and poverty andinequality in India. For trade liberalization, volume of trade as ratio of GDP, head countratio for poverty and Gini-coefficient has been used for income inequality. The grangercausality technique is applied to time series data for the years 1970-2009. The resultsindicate that trade has no significant effect on poverty and poverty has no effect ontrade. However, trade has increased inequality in the short-run and inequality affectedthe trade in the long-run negatively. It partially contradicts the prediction of the Stolper-Samuelson theorem.

Authors and Affiliations

Rana Ejaz Ali Khan| Associate Professor/Head Department of Management Sciences. COMSATS Institute of Information Technology. Sahiwal, Pakistan. E-mails: ranaejazalikhan@yahoo.com, Nadia Bashir| Ph.D. Scholar, Department of Economics. The Islamia University of Bahawalpur, Pakistan. E-mails: nadia_bashir@hotmail.com

Keywords

Related Articles

Public Expenditure And Economic Growth In Nigeria

The debate on the use of fiscal policy for economic stabilization andinducement of economic growth is an old one. Key issue in this debate relatesto the efficacy of public expenditure on stimulating economic growth. Then...

A STUDY ON THE DIFFERENCES IN ADOPTING CASH REFUND CAPITAL REDUCTION AND STOCK REPURCHASE BY COMPANIES IN BULL AND BEAR STOCK MARKETS

This paper investigates the characteristic differences of variables relating to financial performance and corporate governance of companies in Taiwan implementing the policies of cash refund capital reduction or stocks r...

IMPACT OF POLITICAL INSTABILITY AND FOREIGN DIRECT INVESTMENT ON ECONOMIC DEVELOPMENT IN PAKISTAN

According to economists, political instability is harmful for economic development of any Country. Pakistan is also facing the problem of political instability, since political instability causes a decrease in investment...

ECONOMIC PROSPECTS AND PROBLEMS OF CANE BASED FURNITURE ENTERPRISES AS FAMILY BUSINESS AND THEIR BUSINESS TRENDS IN BANGLADESH

Cane based enterprise is one of the most flourished business in the northeastern region of Bangladesh. The purpose of the present study is to observe the pattern of production of cane based furniture in Sylhet city, iden...

CREDIT PORTFOLIO SELECTION ACCORDING TO SECTORS IN RISKY ENVIRONMENTS: MARKOWITZ PRACTICE

In this study, it was researched that how the rate of repayment of loans will be increased and how the credit risk will be minimized in banking sector, by using Markowitz Portfolio Theory. Construction, textile and whole...

Download PDF file
  • EP ID EP1720
  • DOI -
  • Views 1142
  • Downloads 75

How To Cite

Rana Ejaz Ali Khan, Nadia Bashir (2011). Trade Liberalization, Poverty and Inequality Nexus: A Case Study of India. Asian Economic and Financial Review, 1(3), 114-119. https://europub.co.uk/articles/-A-1720