Grimalda, Gianluca and Meschi, Elena (2008) Accounting for inequality in transition economies: an empirical assessment of globalisation, institutional reforms, and regionalisation. Working Paper. University of Warwick. Centre for the Study of Globalisation and Regionalisation, Coventry.

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Abstract

We analyze the causes and mechanisms of inequality in transition economies of Central and Eastern Europe and the Commonwealth of Independent States after the break-up of the Soviet Union. First, we show that both economic globalisation – namely, imports, exports, and foreign direct investment – and institutional factors – namely, privatisation reforms, labour market liberalisation, and product market liberalisation – are strongly associated with within-country rises in inequality. However, some of these factors are intertwined. Second, the impact of globalisation on inequality is negative (positive) at low (high) levels of human capital. Third, human capital appears to exert a uniformly positive effect on inequality at different stages of globalisation. Fourth, trade integration with the European Union is correlated with rises in inequality.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HB Economic Theory J Political Science > JZ International relations
Divisions:	Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation
Library of Congress Subject Headings (LCSH):	Equality, International trade, Technological innovations, Economic development, Globalization
Series Name:	Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation)
Publisher:	University of Warwick. Centre for the Study of Globalisation and Regionalisation
Place of Publication:	Coventry
Date:	April 2008
Number:	No.243
Number of Pages:	47
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
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URI:	http://wrap.warwick.ac.uk/id/eprint/1865

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