With technological revolution, trade in services has now gained a lot of importance in the trade literature. This paper discusses the impact of trade in services on income inequality, focusing in particular on the channels through which openness to trade in services can have an impact on income inequality in developing economies. The paper explores the relationship between trade in services and income inequality in developing economies with an emphasis on India which is by and large a service driven economy. It provides some insights on the question - why it is important to examine the impact of trade in services on income inequality separately from that of trade in goods in developing economies and how this impact is different in the two cases.
Keywords
International Trade, Goods, Services, Income inequality
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