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Published: November 12, 2006
This paper examines the extent to which openness, viewed as trade's share of GDP, impacts the trade-off between
inequality and economic performance. The paper finds a positive and statistically significant relationship between
openness and growth, yet a positive and statistically insignificant relationship between openness and inequality. The first part of the paper summarizes and evaluates the theoretical background and previous empirical research. Next, the paper
presents the conceptual models tested in the paper. This is followed by a discussion of the ideal
data set and an overview of the actual data. Following this discussion, the paper expounds the actual
regression for the models used and presents the regression results. Finally, the paper ends with a summary and concluding remarks.
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