Trade liberalization, domestic reforms, and income inequality: Evidence from Taiwan

• Published in: Review of development economics Vol. 26; no. 3; pp. 1286 - 1309
• Main Authors: Liu, Judith, Lai, Mei‐Ying, Liu, Zong‐Shin
• Format: Journal Article
• Language: English
• Published: Oxford Blackwell Publishing Ltd 01.08.2022
• Subjects: Balance of trade; Disposable income; Exports; Income inequality; industrial structural change; middle‐income open economy; Reforms; Structural change; technological progress; Trade liberalization; Taiwan

This paper estimates the effects of trade liberalization on household income inequality and investigates whether trade liberalization or domestic reforms are the main factors influencing increasing inequality in Taiwan, a middle‐income open economy. We construct an empirical model by decomposing the...