Trade liberalization, deindustrialization, and inequality: evidence from Middle-Income Latin American Countries
Resumen:
This article explores the relationship among trade liberalization, deindustrialization, and income inequality in the more industrially advanced Latin American countries. It argues that, among the most important liberal reforms implemented during the 1980s and 1990s, trade reform was especially detrimental to equality because it accelerated deindustrialization. The analysis provides evidence to support this mechanism. Therefore, as the liberalization of trade increased, the deindustrialization process produced an increase in inequality. In short, evidence shows how the process of economic integration to the global market, as it took place, produced an increase in inequality through the destruction of formal employment.
| 2013 | |
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Desigualdad social América Latina |
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| Inglés | |
| Universidad Católica del Uruguay | |
| LIBERI | |
| https://hdl.handle.net/10895/1444 | |
| Acceso abierto | |
| Licencia Creative Commons Atribución – No Comercial – Sin Derivadas (CC BY-NC-ND 4.0) |
| Sumario: | This article explores the relationship among trade liberalization, deindustrialization, and income inequality in the more industrially advanced Latin American countries. It argues that, among the most important liberal reforms implemented during the 1980s and 1990s, trade reform was especially detrimental to equality because it accelerated deindustrialization. The analysis provides evidence to support this mechanism. Therefore, as the liberalization of trade increased, the deindustrialization process produced an increase in inequality. In short, evidence shows how the process of economic integration to the global market, as it took place, produced an increase in inequality through the destruction of formal employment. |
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