Research Article
Trade Relations and Income Distribution in Developing Countries
@INPROCEEDINGS{10.4108/eai.25-5-2024.2349393, author={Herlina Herlina and Bambang Bernanthos}, title={Trade Relations and Income Distribution in Developing Countries}, proceedings={Proceedings of the 4th International Conference on Law, Social Sciences, Economics, and Education, ICLSSEE 2024, 25 May 2024, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICLSSEE}, year={2024}, month={8}, keywords={digital economy msmes economic growth}, doi={10.4108/eai.25-5-2024.2349393} }- Herlina Herlina
Bambang Bernanthos
Year: 2024
Trade Relations and Income Distribution in Developing Countries
ICLSSEE
EAI
DOI: 10.4108/eai.25-5-2024.2349393
Abstract
International trade can play an important role in driving economic growth. Trade can cause a shift in jobs from less competitive sectors to more competitive sectors, which can impact distribution. The method used to complete this assignment is the Systematic Literature Review (SLR) method which can be used by formulating questions clearly, explicitly, and systematically to identify, select, and critically assess relevant research. Wage Inequality and International Trade's Effect on It According to Fabian Trottner (2022), wage inequality results from unequal income distribution. The Effect of Exchange Progression and Compensation Imbalance As indicated by Wolfgang Lechtaler and Mariya Mileva, the Effect of Globalization on Pay Disparity As per Daniel Auguste (2021), The Effect of Globalization on Pay Imbalance As per Elhanan Helpman (2016), The Effect of Exchange Advancement on Pay Imbalance As per Xiaofeng Penny Li (2015). The aftereffects of observational exploration show that the connection among exchange and pay distribution in developed countries is that international trade causes unequal income distribution in the form of wage inequality. It happens because large companies that have a more professional workforce are more productive than companies that do not have a skilled workforce.