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For Richer, for Poorer

by Nina Pavcnik | Wednesday, February 15, 2017

This piece focuses on the effects of international trade on inequality within developing countries.  The effects of trade on inequality within a country are complex, as trade influences people’s earnings and consumption in several ways, and its uneven effects vary according to context. The nature of trade integration; how easily workers and capital move across firms, industries, and geographic regions; and where the people affected by trade fall on a country’s income distribution all play a role. This article highlights some insight into these issues from recent studies of trade’s uneven effects in several developing economies. 

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