Are Economic Liberalization and Equality Compatible? Evidence from South Asia

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30 Scopus citations

Abstract

Global studies of liberalization and inequality have produced divergent findings arguably because of highly heterogeneous contexts across countries and regions. This paper focusing on the South Asian experience with more homogeneous contexts finds that liberalization efforts and inequality grew in the region during 1980-03. Data support a mutually reinforcing positive relationship in the region suggesting that liberalization helps increase inequality, which in turn serves as a precondition to liberalize. Because economically unequal countries tend to liberalize more intensely, possibly hurting the poor, a lesson for concerned policymakers is to introduce policies to incrementally advance economic openness.

Original languageEnglish (US)
Pages (from-to)1836-1857
Number of pages22
JournalWorld Development
Volume35
Issue number11
DOIs
StatePublished - Nov 2007
Externally publishedYes

Keywords

  • comparative analysis
  • economic inequality
  • economic liberalization
  • panel data
  • South Asia

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Sociology and Political Science
  • Economics and Econometrics

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