Free Trade Agreements and Inequality

This paper examines the potential effects of Brexit on income inequality in the United Kingdom (UK) and utilizes empirical methods to predict these effects. The study focuses on the impact of trade and Foreign Direct Investment (FDI) on income inequality, using macroeconomic data from 1971 to 2019....

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Main Author: Alfalah, Osama (author)
Other Authors: Alhammadi, Abdullah (author), Ali, Mohammad (author)
Published: 2024
Online Access:http://hdl.handle.net/11675/12192
http://www.scopus.com/inward/record.url?scp=85198973213&partnerID=8YFLogxK
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author Alfalah, Osama
author2 Alhammadi, Abdullah
Ali, Mohammad
author2_role author
author
author_facet Alfalah, Osama
Alhammadi, Abdullah
Ali, Mohammad
author_role author
dc.creator.none.fl_str_mv Alfalah, Osama
Alhammadi, Abdullah
Ali, Mohammad
dc.date.none.fl_str_mv 2024-07-03
2025-03-10T09:16:31Z
2025-03-10T09:16:31Z
dc.identifier.none.fl_str_mv 10.32479/ijefi.15443
http://hdl.handle.net/11675/12192
http://www.scopus.com/inward/record.url?scp=85198973213&partnerID=8YFLogxK
dc.publisher.none.fl_str_mv EconJournals
dc.relation.none.fl_str_mv Department of Finance- CBE
International Journal of Economics and Financial Issues
dc.title.none.fl_str_mv Free Trade Agreements and Inequality
dc.type.none.fl_str_mv Journal Article
Peer-reviewed
info:eu-repo/semantics/publishedVersion
description This paper examines the potential effects of Brexit on income inequality in the United Kingdom (UK) and utilizes empirical methods to predict these effects. The study focuses on the impact of trade and Foreign Direct Investment (FDI) on income inequality, using macroeconomic data from 1971 to 2019. By employing cointegration techniques and an Error Correction Model on annual time series data, the analysis reveals that higher levels of trade have historically reduced income inequality in the UK over the long term. Consequently, changes in trade resulting from Brexit are expected to have a negative influence on the distribution of income and wealth in the UK. On the other hand, the study finds that higher FDI has only had a short-term negative effect on income distribution in the UK.
id AUKR_2ad4388764256fa6367e07c8e30c6be3
identifier_str_mv 10.32479/ijefi.15443
network_acronym_str AUKR
network_name_str AU Kuwait Rep
oai_identifier_str oai:dspace.auk.edu.kw:11675/12192
publishDate 2024
publisher.none.fl_str_mv EconJournals
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
spelling Free Trade Agreements and InequalityAlfalah, OsamaAlhammadi, AbdullahAli, MohammadThis paper examines the potential effects of Brexit on income inequality in the United Kingdom (UK) and utilizes empirical methods to predict these effects. The study focuses on the impact of trade and Foreign Direct Investment (FDI) on income inequality, using macroeconomic data from 1971 to 2019. By employing cointegration techniques and an Error Correction Model on annual time series data, the analysis reveals that higher levels of trade have historically reduced income inequality in the UK over the long term. Consequently, changes in trade resulting from Brexit are expected to have a negative influence on the distribution of income and wealth in the UK. On the other hand, the study finds that higher FDI has only had a short-term negative effect on income distribution in the UK.EconJournals2025-03-10T09:16:31Z2025-03-10T09:16:31Z2024-07-03Journal ArticlePeer-reviewedinfo:eu-repo/semantics/publishedVersion10.32479/ijefi.15443http://hdl.handle.net/11675/12192http://www.scopus.com/inward/record.url?scp=85198973213&partnerID=8YFLogxKDepartment of Finance- CBEInternational Journal of Economics and Financial Issuesoai:dspace.auk.edu.kw:11675/121922025-03-10T09:16:31Z
spellingShingle Free Trade Agreements and Inequality
Alfalah, Osama
status_str publishedVersion
title Free Trade Agreements and Inequality
title_full Free Trade Agreements and Inequality
title_fullStr Free Trade Agreements and Inequality
title_full_unstemmed Free Trade Agreements and Inequality
title_short Free Trade Agreements and Inequality
title_sort Free Trade Agreements and Inequality
url http://hdl.handle.net/11675/12192
http://www.scopus.com/inward/record.url?scp=85198973213&partnerID=8YFLogxK