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Article: Regional Income Inequality and International Trade
- Article from:
- Economic Geography
- Article date:
- July 1, 2004
- Author:
CopyrightCopyright Economic Geography Jul 2004. Provided by ProQuest LLC. (Hide copyright information)
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Abstract:
This study investigates the effects of trade on income inequality across regions in the United States. Using both structural and price-based measures of regional trade involvement, we evaluate the effects of trade on inequality within and across states, the metropolitan and nonme
tropolitan portions of the states, and the major census regions. Across all states and metropolitan and nonmetropolitan areas, we found that trade affects inequality primarily via import and export prices. In contrast to our expectations, however, a weaker dollar-more expensive imports and cheaper exports-is associated with the worsening of a state's position relative to other states and greater inequality ...