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We examine how trade openness influences income inequality within countries. The sample includes 139 countries over the period 1970-2014. We employ predicted openness as instrument to deal with the endogeneity of trade openness. The effect of trade openness on income inequality differs across...
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, protectionism, and globalization. We find that preferences for open-market trade policies cannot be sufficiently explained by …-suited predictors for the substantial cross-regional variation in the support for globalization. Country specific narratives are …
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The Schengen Agreement has guaranteed unchecked travel across internal EU borders since 1995. Has it also facilitated trade flows? Our econometric analysis suggests that Schengen has boosted trade by 3% on average (equivalent to a drop in tariffs by 0.7 percentage points). Goods trade is more...
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% for the EU, by .5% for the United States, and by -.02% for the rest of the world relative to the status quo. However …
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