Abstract

This study analyses the fact that trade and income distribution. The objective of the study is to investigate the impact of trade on income distribution in Pakistan. This study shows that trade increases income inequality using time series analysis from Pakistan empirical analysis. In this study a little attention is given to the theories regarding income distribution. The data is processed from 1980 to 2010 an OLS technique is used to get results. Gini coefficient is used as a measure of income inequality. The results found shoes that trade has negative impact on income distribution and income inequality is negatively affected by remittances, and GDP but population growth has negative impact on income inequality.