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|Trade and inequality: evidence for nonlinear dependencies and feedback
|Διατμηματικό Πρόγραμμα Μεταπτυχιακών Σπουδών στην Οικονομική Επιστήμη
|In this thesis, our objective is to identify the nature of the dependence or causal relationships that exists between trade and income inequality. We use monthly data for a group of 14 developing countries and apply Johansen’s linear cointegration, linear Granger causality, B.D.S test for non-linear dependence and non-linear Mackey-Glass Granger-type causality. The contribution of this thesis lies -mainly- on the application of the Mackey-Glass Granger-type causality for identifying nonlinear dependencies between trade and inequality. We identify a curious bi-directional relationship where trade causes non-linearly inequality and inequality causes linearly trade. This means either that inequality does not converge into a steady state or equilibrium point, or that it converges with periodic or aperiodic short-term oscillations around it. This evidence has a very important implication, that it is rather impossible to control inequality between trading countries.
Non-linear Granger causality
|Διπλωματική εργασία--Πανεπιστήμιο Μακεδονίας, Θεσσαλονίκη 2009.
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|ΔΠΜΣ Οικονομική Επιστήμη (M)
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