GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES

The main purpose of this paper is investigating the dynamics of income inequality and globalization with emphasis on laber market inequality in data covering 13 developed countries over the period of 1995-2016. The paper uses Panel cointegration test and Fully Modified Ordinary Least Squares method to determine the long run relationship between Globalization, Inequality in income, FDI and income inequality indices. The results suggest that globalization did increase the inequality of gross wages. In addition, both trade openness and outward foreign direct investments had a positive effect on gross income inequality, but inward FDI did not have an effect. On the other hand, when looking at the effects of globalization on the net income inequality, results differed. An increase in outward and inward FDI will decrease the net income inequality. Technological progress, on the other hand, had only a significant positive effect on the net income inequality. Moreover, results showed that an increase in globalization increases the income redistribution by government. 

___

  • Aghion, P., Caroli, E., & Garcia-Penalosa, C. (1999). Inequality and economic growth: the perspective of the new growth theories.Journal of Economic literature, 37(4), 1615-1660. 2. Alvaredo, F., Atkinson, A. B., Piketty, T., & Saez, E. (2013). The top 1 percent in international and historical perspective. The Journal of Economic Perspectives, 27(3), 3-20. 3. Atkinson, A. B., & Piketty, T. (Eds.). (2007). Top incomes over the twentieth century: a contrast between continental european and english-speaking countries. OUP Oxford. 4. Baek, I., & Shi, Q. (2016). Impact of Economic Globalization on Income Inequality: Developed Economies vs Emerging Economies. Global Economy Journal, 16(1), 49- 61. 5. Barro, R. J., and X. Sala-i-Martin. (1997). Technological Diffusion, Convergence, and Growth. Journal of Economic Growth, 2 (1), 2–26. 6. Barro, R., & Sala-i-Martin, X. (1995). Technological Diffusion, Convergence and Growth (No. 1255). CEPR Discussion Papers. 7. Bergh, A; Nilsson, T (2010) Do liberalization and globalization increase income inequality? European Journal of Political Economy, 4(26), 488-505 8. Beyer, H., Rojas, P., & Vergara, R. (1999). Trade liberalization and wage inequality. Journal of Development Economics, 59(1), 103-123. 9. Bjørnstad, R., & Skjerpen, T. (2006). Trade and inequality in wages and unemployment. Economic modelling, 23(1), 20-44.

___

Bibtex @araştırma makalesi { iuipad371184, journal = {Journal of Economic Policy Researches}, eissn = {2148-3876}, address = {}, publisher = {İstanbul Üniversitesi}, year = {2017}, volume = {5}, number = {1}, pages = {87 - 106}, title = {GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES}, key = {cite}, author = {Khyareh, Mohsen Mohammadi} }
APA Khyareh, M. M. (2017). GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES . Journal of Economic Policy Researches , 5 (1) , 87-106 .
MLA Khyareh, M. M. "GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES" . Journal of Economic Policy Researches 5 (2017 ): 87-106 <
Chicago Khyareh, M. M. "GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES". Journal of Economic Policy Researches 5 (2017 ): 87-106
RIS TY - JOUR T1 - GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES AU - Mohsen MohammadiKhyareh Y1 - 2017 PY - 2017 N1 - DO - T2 - Journal of Economic Policy Researches JF - Journal JO - JOR SP - 87 EP - 106 VL - 5 IS - 1 SN - -2148-3876 M3 - UR - Y2 - 2017 ER -
EndNote %0 İktisat Politikası Araştırmaları Dergisi GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES %A Mohsen Mohammadi Khyareh %T GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES %D 2017 %J Journal of Economic Policy Researches %P -2148-3876 %V 5 %N 1 %R %U
ISNAD Khyareh, Mohsen Mohammadi . "GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES". Journal of Economic Policy Researches 5 / 1 (Aralık 2017): 87-106 .
AMA Khyareh M. M. GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES. JEPR. 2017; 5(1): 87-106.
Vancouver Khyareh M. M. GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES. Journal of Economic Policy Researches. 2017; 5(1): 87-106.
IEEE M. M. Khyareh , "GLOBALIZATION, INCOME INEQUALITY AND INCOME DISTRIBUTION: NEW EVIDENCES FROM DEVELOPED COUNTRIES", , c. 5, sayı. 1, ss. 87-106, Ara. 2017