Non-linear Dynamics of Trade Openness and Income Inequality: New Evidence from a Dynamic Panel Threshold Analysis
- Title
- Non-linear Dynamics of Trade Openness and Income Inequality: New Evidence from a Dynamic Panel Threshold Analysis
- Creator
- Amin, Aadil; Ahmad, Masroor; Tariq, Asif
- Description
- This study examines the non-linear relationship between trade openness and income inequality in BRICS countries (Brazil, Russia, India, China and South Africa) over the period 19902020. It explores how different levels of trade openness affect inequality, with an emphasis on identifying threshold effects. Using a dynamic panel threshold estimation technique, the analysis reveals a U-shaped relationship: trade openness reduces inequality up to a critical threshold of 50.877%, beyond which further liberalisation exacerbates inequality. The JKS panel causality test indicates a unidirectional causal relationship from trade openness to income inequality. These findings highlight the need for calibrated trade policies in BRICS nations. Promoting trade openness up to the identified threshold may reduce inequality, but liberalisation beyond this point should be accompanied by redistributive and institutional measures to mitigate adverse distributional outcomes. 2025 Indian Institute of Foreign Trade
- Source
- Foreign Trade Review;Issue;;Article No.;157325251362519;
- Date
- 01-01-2025
- Publisher
- Sage Publications India Pvt. Ltd
- Subject
- C23; C33; D31; F14; income inequality; panel causality test; panel threshold estimation; Trade openness
- Coverage
- Amin A., Department of Economics, Central University of Kashmir, Jammu and Kashmir, Ganderbal, India; Ahmad M., Department of Economics, Central University of Kashmir, Jammu and Kashmir, Ganderbal, India; Tariq A., Department of Data Science CHRIST (Deemed to be University), Maharashtra, Pune, India
- Rights
- Restricted Access; Hardcopy may be available in the library
- Relation
- ISSN: 157325;
- Format
- online
- Language
- English
- Type
- Article
Collection
Citation
Amin, Aadil; Ahmad, Masroor; Tariq, Asif, “Non-linear Dynamics of Trade Openness and Income Inequality: New Evidence from a Dynamic Panel Threshold Analysis,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 19, 2026, https://archives.christuniversity.in/items/show/23102.