Trade Openness and Income Inequality: Evidence from India
DOI:
https://doi.org/10.47604/ijecon.2443Keywords:
Trade Openness, Income Inequality EvidenceAbstract
Purpose: The aim of the study was to investigate the trade openness and income inequality: evidence from India
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: Trade openness in India has complex effects on income inequality. While it can foster economic growth and reduce poverty by creating employment opportunities, it also has the potential to exacerbate income disparities. Trade openness may lead to job displacement and income losses for low-skilled workers, widening the gap between rich and poor. Additionally, globalization may favor certain sectors or skill groups over others, concentrating wealth among the elite.
Unique Contribution to Theory, Practice and Policy: Stolper-samuelson theorem, factor endowment theory & new trade theory may be used to anchor future studies on the trade openness and income inequality: evidence from India. Encourage the diversification of India's export basket to include more value-added products and services. Invest in education and skill development programs to enhance the human capital of the workforce, thereby improving their competitiveness in the global market
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