What is it about?
It has long been known that trade liberalization affects income distribution. Recently, some studies show that the shrinking middle class is associated with trade liberalization. This study addresses this issue by focusing on the timing of trade liberalization.
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Why is it important?
This study constructs a dynamic model to analyze trade liberalization and the middle-income class. The dynamic framework explains why trade liberalization shrinks the class in some developing countries and does not in others. The critical factor of this mechanism is the timing of trade liberalization.
Perspectives
I believe that the impact of trade liberalization on income distribution is a concern of researchers in a wide range of fields. I hope that this study is thought-provoking for researchers who are interested in this issue.
Tatsuya Asami
Osaka Daigaku
Read the Original
This page is a summary of: Timing of international market openings and shrinking middle‐income class, Review of Development Economics, August 2021, Wiley,
DOI: 10.1111/rode.12801.
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