International trade and inequality. Recent evidence between economic blocs

The objective of this paper is to examine the impacts of trade openness on the
level of poverty and wealth inequality in the member countries of these blocs. To this end, a literature review of these issues is carried out and a graphical analysis of the economic blocs is made with recent data on the influence of trade on income inequality and the level of poverty in the member countries. Econometric panel data models are used for each bloc. For this model we used data on the variables GDP, exports, imports, investment, Gini index and poverty index for each economic bloc. The results show that the most significant variable for reducing income inequality and reducing poverty is trade, as it has a negative relationship in the most important economic blocs such as T-MEC, EU and ASEAN, however, for MERCOSUR the most significant variable was GDP, for the rest of the economic blocs GDP was a variable that was more detrimental to inequality and poverty.

Trade, inequality, poverty, economic blocs, income distribution