Table 14.3 presents the estimation results. Model 1 is the regression of the Gini
coefficient on the ratio of trade to GDP, in addition to other control variables.
Model 2 puts emphasis on the variables of financial liberalization by regressing the
Gini coefficient on the ratio of foreign assets to GDP and the ratio of inward FDI
to GDP, together with other control variables. Model 3 puts together the variables
of trade and financial liberalization. Models 4 and 5 change the specification by
breaking down the variable of trade liberalization into the ratio of exports to GDP
and the ratio of imports to GDP to account for the possibility that exports and
imports may affect inequality differently.