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We examine the effect of trade on income inequality in small developing countries. We use two well-accepted trade cost variables for identification: one is based on Baltic Dry Index and another is commodities’ price index. Our main finding is that trade leads to a significant reduction (increase) in income inequality in autocracies (democracies). To explain such different effects, we provide supporting...
In this paper, we draw on established theoretical work to analyze empirically which segments of the population in the target states bear the most cost when economic sanctions are imposed. Using a cross-country analysis of 68 target states from 1960 to 2008, we find robust empirical evidence that the imposition of sanctions has a deleterious effect on income inequality. Focusing on various sanction...
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