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|Title:||Trade and inequality: evidence for nonlinear dependencies and feedback|
|Department:||Διατμηματικό Πρόγραμμα Μεταπτυχιακών Σπουδών στην Οικονομική Επιστήμη|
|Abstract:||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
|Information:||Διπλωματική εργασία--Πανεπιστήμιο Μακεδονίας, Θεσσαλονίκη 2009.|
|Appears in Collections:||ΔΠΜΣ Οικονομική Επιστήμη (M)|
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