Journal
ECONOMICS LETTERS
Volume 195, Issue -, Pages -Publisher
ELSEVIER SCIENCE SA
DOI: 10.1016/j.econlet.2020.109469
Keywords
Linder hypothesis; Services trade; Income level; Income inequality
Categories
Funding
- Humanity and Social Science Foundation of Ministry of Education of China [20YJC790024]
- CUFE 2020 Youth Talent Project [QYP2007]
- CUFE First Class Discipline Research Project [GMYL2019008]
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This article examines how differences in the income level and income inequality of trading partners impact their bilateral trade in services. Results show that the Linder hypothesis holds at the aggregate level. Both similar levels of per capita income and income inequality in two countries increase services trade. However, the precise impact varies with the particular service sector, which highlights the importance of addressing the heterogeneity of service sectors. (C) 2020 Elsevier B.V. All rights reserved.
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