The rise of income inequality and the posible role of trade in de proces

The aim is to analyse the effects of trade on the distribution of income (income inequality); using a fixed effect model for the panel of 14 OECD countries. The GINI coefficient is the dependent variable and trade is the main independent variable. The results give us grounds to assume that importing agricultural products enhances income equality and importing manufactures decreases income equality. Trade as a whole does not have any significant effect on income inequality. In two regressions inflation rate and education spending have inequality decreasing effect.