Impact of Globalization on Income Distribution Inequality in 60 Countries
Document Type
Article
Department or Administrative Unit
Economics
Publication Date
3-22-2011
Abstract
This paper investigates the impact of globalization on income inequality distribution in 60 developed, transitional, and developing countries. Using Kearney’s (2002, 2003 and 2004) data and principal component analysis (PCA), two globalization indices are created. One of these indices is the equally weighted index. The other index is derived from the principal component analysis. The Gini coefficient of a country is regressed on each index, respectively, in all 60 test cases.
The main contribution of this paper is its finding of a negative relationship between both globalization indices and the Gini coefficient for all 60 countries under investigation. Furthermore, test results indicate that this relationship is robust. Therefore, the empirical evidence presented in this paper supports the claim that globalization helps reduce income distribution inequality within countries.
Recommended Citation
Zhou, L., Biswas, B., Bowles, T. & Saunders, P.J. (2011). Impact of globalization on income distribution inequality in 60 countries. Global Economy Journal 11(1). DOI: 10.2202/1524-5861.1628
Journal
Global Economy Journal
Rights
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Comments
This article was originally published in Global Economy Journal. The full-text article from the publisher can be found here.
Due to copyright restrictions, this article is not available for free download from ScholarWorks @ CWU.