A revisit to the relationship between globalization and income inequality: are levels of development really paramount?

HAN, Volkan; Öcal, Oğuz; Aslan, Alper

doi:10.1007/s11135-022-01402-z

Cited by 8 publications

(1 citation statement)

References 60 publications

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“…According to the CS-ARDL results, globalization mitigates income inequality and show that a 1% increase in globalization causes a decrease in income equality by 0.093% in the long-run. Our negative result of globalization is in line with the study of Bechtel (2014), Han et al (2023), andIbrahim (2022) and contradicts the findings of Lee et al (2020). This outcome can be attributed to the spillover effect of globalization, as the Heckscher-Ohlin theory says that globalization increases gains of abundant factors (Ibrahim, 2022).…”

Section: Conclusion and Policy Implicationssupporting

confidence: 57%

Yükselen Sanayi Ekonomilerinde Dijitalleşme ve Küreselleşmenin Gelir Dağılımı Üzerindeki Etkisi

DEMİR,

CENGİZ,

NAS

2023

Abant Sosyal Bilimler Dergisi

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Digitalization is the most important indicator of technological development. More specifically, digitalization affects income distribution in different ways. Improvement in digital technologies promotes labour productivity and economic efficiency. Hence, how digitalization affects income inequality is required to obtain more evidence. This study investigates the distributional impact of digitalization in 29 Emerging Industrial Economies (EIEs) over the period 2000-2020. The panel ARDL model estimation results show digitalization alleviates income inequality. Likewise, economic growth, globalization, and institutional quality also negatively affect income inequality. In addition, economic growth, globalization, and institutional quality support the encouraging effect of digitalization on income inequality. Moreover, the Dumitrescu-Hurlin (DH) panel causality test result confirms the two-way causality between economic growth, globalization, and digitalization with income inequality, and the one-way causality running from income inequality to institutional quality.

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