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Does wealth inequality reduce the gains from trade? Mauro Caselli, Department of Economics, University of Oxford Download the Paper (PDF format) - October 1, 2008 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing. ABSTRACT: Panel data on 54 developing countries between 1960 and 2000 are used to investigate how the impact of opening to trade on economic growth is affected by wealth inequality. The results suggest (a) that opening to trade tends to accelerate growth but (b) that the addition to growth depends inversely on the level of wealth inequality prior to opening. These findings confirm the general importance for rapid growth in developing countries of reducing inequalities of opportunity. SUGGESTED CITATION: Mauro Caselli, "Does wealth inequality reduce the gains from trade?" (October 1, 2008). The Centre for the Study of African Economies Working Paper Series. Working Paper 310. http://www.bepress.com/csae/paper310