Climate Change, Trade and Income Inequality: A Quantile Panel Regression Approach

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Ahmadzadeh Khaled; Manochehri Salaheddin; Amani Ramin; Samadipour Shahla

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Journal Paper

Paper Information

Journal: JOURNAL OF ECONOMICS AND MODELING (JOURNAL OF ECONOMICS) Year:2022 | Volume:13 | Issue:1 Page(s): 57-92

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Title

Climate Change, Trade and Income Inequality: A Quantile Panel Regression Approach

Author(s)

Ahmadzadeh Khaled | Manochehri Salaheddin | Amani Ramin | Samadipour Shahla | Issue Writer Certificate

Keywords

Climate Change

Trad

Income Inequality

Quantile Panel Regression

Abstract

Trade and Climate Change are some of the important factors affecting Income Inequality. With the globalization and Trade interrelationships between countries, Income Inequality has been reduced to some extent. On the other hand, Climate Change as an important and current issue in the world has had great effects on economic growth and Income Inequality of countries. The purpose of this study is to analyze the relationship between Trade and Climate Change and Income Inequality. To examine the asymmetric effects of Trade and Climate Change on Income Inequality in 60 countries, the Quantile Panel Regression model is used by 2010 to 2020 data. In addition, the Climate Change Performance Index for Climate Change and the Trade Openness Index for Trade has been used. The results show that Climate Change over the years has increased Income Inequality in selected countries. Also, the results show that the third to seventh quantiles of income have been most affected by Climate Change. On the other hand, Trade between countries has reduced the inequality of selected countries in different income quantiles.

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