Has Globalisation Increased Inequality?

Dreher, Axel; Gaston, Noel

doi:10.2139/ssrn.928403

Cited by 22 publications

(23 citation statements)

References 47 publications

(42 reference statements)

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“…Previous empirical studies have shown that globalisation was positively correlated with income inequality over the period 1970–2000 especially in OECD countries (Dreher and Gaston, ; Gaston, ). The positive correlation was, however, not attributable to economic globalisation .…”

Section: Hypotheses and Empirical Evidencementioning

confidence: 96%

The Evidence on Globalisation

Potrafke¹

2014

World Economy

347

222

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Globalisation is blamed for many socioeconomic shortcomings. I discuss the consequences of globalisation by surveying the empirical globalisation literature. My focus is on the KOF indices of globalisation that have been used in more than 100 studies. Early studies using the KOF index reported correlations between globalisation and several outcome variables. Studies published more recently identify causal effects. The evidence shows that globalisation has spurred economic growth, promoted gender equality and improved human rights. Moreover, globalisation did not erode welfare state activities, did not have any significant effect on labour market interaction and hardly influenced market deregulation. It increased, however, within‐country income inequality. The consequences of globalisation thus turn out to be overall much more favourable than often conjectured in the public discourse.

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Section: Hypotheses and Empirical Evidencementioning

confidence: 96%

The Evidence on Globalisation

Potrafke¹

2014

World Economy

347

222

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“…Traditionally, low-skilled workers are among the losers in industrial countries, whereas they are among the winners in developing or transition countries. Furthermore, globalization might also increases uncertainty, and, finally, might reversely impact individuals' relative income position (Dreher and Gaston, 2006), thus decreasing subjective wellbeing.…”

Section: Economic Factorsmentioning

confidence: 99%

Cross-country determinants of life satisfaction: exploring different determinants across groups in society

2007

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. We thank Stephen Lea and participants at the 30 th IAREP conference in Prague for comments on an earlier version and Gilles Winkler for excellent research assistance. AbstractThis paper explores a wide range of cross-country determinants of life satisfaction exploiting a database of 90,000 observations in 70 countries. We distinguish four groups of aggregate variables as potential determinants of satisfaction: political, economic, institutional, and human development and culture. We use ordered probit to investigate the importance of these variables on individual life satisfaction and test the robustness of our results with Extreme Bounds Analysis. The results show that only a small number of factors, such as openness, business climate, postcommunism, the number of chambers in parliament, Christian majority, and infant mortality robustly influence life satisfaction across countries while the importance of many variables suggested in the previous literature is not confirmed. This remains largely true when the analysis splits national populations according to gender, income and political orientation also. JEL Codes: I31, H10, H40

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“…Despite having better economic growth, poverty and the gap between the rich and poor still prevail (Easterly, 2001) not only in the less developed countries but also in the developed world (Gaston and Rajaguru, 2009). Although multiple factors are likely to impact income inequality, the globalization process continues to receive increasing attention (Gaston and Rajaguru, 2009;Dreher et al 2008). The proponents of globalization perceive the stage of economic development and international mobility of worker force (labor markets) as one of the most important channels influencing income inequality (Yabuuchi and Chaudhuri, 2007).…”

Section: Introductionmentioning

confidence: 99%

Linkages between income inequality, international remittances and economic growth in Pakistan

2013

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Abstract:This paper explores the dynamic linkages between income inequality, international remittances and economic growth using time series data over the period of 1976-2006 in case of Pakistan. The cointegration analysis based on the bounds test confirms the existence of a long-run relationship between income inequality, international remittances and economic growth. Our results reveal that income inequality and international remittances enhance economic growth. The causality analysis based on innovative accounting approach shows bidirectional causality between income inequality and economic growth and same is true for international remittances and income inequality. International remittances are cause of economic growth but not vice versa.Although we find support for Kuznets hypothesis but Pakistan is yet to benefit, in terms of reducing the gaps of income inequality, from the international flow of remittances and economic growth. The paper argues that, from a policy perspective, there is an urgent need for policy makers in Pakistan to reduce the widening gap of income inequality by focusing on income redistribution policies and to go beyond the traditional factors in balancing income inequality. JEL Classification Numbers: O11, O15, D13

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Has Globalisation Increased Inequality?

Cited by 22 publications

References 47 publications

The Evidence on Globalisation

The Evidence on Globalisation

Cross-country determinants of life satisfaction: exploring different determinants across groups in society

Linkages between income inequality, international remittances and economic growth in Pakistan

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