This study is an attempt to test the hypothesis that outward orientation is favorable for income distribution in labor abundant country. The hypothesis is examined by using data from a cross-section of 34 developing countries. A positive relationship is found between outward orientation and income distribution. The share of lower income classes tends to increase with increased degree of openness, while the share of higher income classes tend to decrease with it. Income inequality drops when countries shift their trade strategy from an inward-oriented to an outward-oriented one. This equalizing effect of outward orientation is statistically significant. In addition to trade policy variable, this study also examines how income per capita, investment ratio, and educational variables influence income distribution. The relationship between income per capita and inequality is found to give weak support to Kuznets' inverted U relationship. Higher investment ratio is found to be favorable for higher income classes. An increase in the secondary education enrollment ratio is positively associated with lower income inequality, while mean years of schooling is positively associated with higher income inequality. / Indonesia is one of many developing countries which experienced a shift in trade policy from an inward-oriented strategy to an outward oriented strategy. Income inequality is observed to decline after the shift in trade policy. Export expansion as a proxy for the degree of outward orientation is positively associated with equality. The positive association between export expansion and equality tends to be stronger in the period after the shift in trade orientation. The effect of non-oil export expansion on equality is greater and stronger than the effect of total export expansion. The effect of export expansion on inequality in labor income distribution is greater and stronger than the effect of export expansion on inequality in expenditure distribution. The labor force participation rate and secondary school enrollment ratio have a positive association with equality. There is no significant relationship between income per capita and inequality found in the Indonesia data. / Source: Dissertation Abstracts International, Volume: 56-04, Section: A, page: 1452. / Major Professor: James H. Cobbe. / Thesis (Ph.D.)--The Florida State University, 1995.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_77425 |
| Contributors | Karimi, Syafruddin., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 165 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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