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Essays on Trade, Inequality, and Gravity Open Access


Other title
Type of item
Degree grantor
University of Alberta
Author or creator
Sehic, Eldar
Supervisor and department
Ural Marchand, Beyza (Economics)
Examining committee member and department
Szostak, Rick (Economics)
Smith, Connie (Economics)
Zhou, Li (Economics)
Ulubasoglu, Mehmet (Economics)
Liu, Runjuan (Business)
Department of Economics

Date accepted
Graduation date
Doctor of Philosophy
Degree level
This dissertation is composed of three essays that focus on trade’s impacts on inequality. The first essay is an empirical analysis of trade and trade partner inequality, in the context of gravity, covering 128 exporters and 126 importers for years 1982-2000. It reveals import share’s negative average effect on income per capita, export share’s positive average effect on income per capita, differential effects of trade in favor of more developed countries, and inequality-inducing impact of contemporary trade. The second essay is an empirical analysis of trade and intranational inequality, covering 151 countries for years 1978-2010. It tests three major existing hypotheses that relate the effect of trade openness on intranational inequality. The analysis is then extended to test a non-linear hypothesis, which predicts that the effect of trade openness on intranational inequality is conditional on the level of trade openness. The results indicate that a U shape effect is significant with all three trade openness measures: export share, import share, and trade share. The third essay is a theoretical analysis of trade and international inequality, in the context of dynamic gravity. Key novel expressions are derived: balance condition and barrier-flow dynamic gravity relationship. The balance condition shows that growth of a country’s market share and trade ease puts downward pressure on the market share and trade ease of other countries.The barrier-flow dynamic gravity relationship shows that relative trade flows growth rate is inversely proportional to relative trade barriers growth rate. The dissertation contributes to our understanding of trade’s impacts on trade partner inequality, intranational inequality, and international inequality.
Permission is hereby granted to the University of Alberta Libraries to reproduce single copies of this thesis and to lend or sell such copies for private, scholarly or scientific research purposes only. The author reserves all other publication and other rights in association with the copyright in the thesis and, except as herein before provided, neither the thesis nor any substantial portion thereof may be printed or otherwise reproduced in any material form whatsoever without the author's prior written permission.
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