Abstract
Income inequality has increased dramatically in most countries, especially in developing countries, over the past three decades and it has become a widespread concern. The widening income disparity within countries has coincided with the process in which countries are increasingly exposed to the globalization through increased flows of goods, services, capital and labour across international borders. This study examines the relationship between globalization (measured by both financial and trade variables) and income inequality (measured bu Gini index) using a panel dataset of BRICS-T countries over the 1990–2015 period. Several models are estimated by panel-corrected standard errors (PCSE) methodology. The findings indicate that trade openness’ effect is insignificant, while financial globalization occuring through stock market turnover rate, total assets and liabilities and capital account openness has been the driving force of income inequality in these countries since 1990.
Keywords
Income Inequality Trade Globalization Financial Globalization Net Gini Index BRICS-T Countries
References
- Alderson, A. S. And Nielsen, F. (1999). Income Inequality, Development, And Dependence: A Reconsideration. American Sociological Review, 64 (4), 606-631.
- Bardhan, P. (2005). Globalization, Inequality, and Poverty: An Overview. University of California at Berkeley.
- Barro, R. J. (2000). Inequality and Growth in a Panel of Countries. Journal of Economic Growth, 5(1), 5-32.
- Beck, N. and Katz, J. N. (1995). What to do (and not to do) with time-series cross-section data. American political science review, 89(3), 634-647.
- Beck, T., Demirgüç-Kunt, A. and Levine, R. (2007). Finance, Inequality and the Poor. Journal of Economic Growth, 12(1), 27-49.
- Bhandari, B. (2007). Effect of Inward Foreign Direct Investment on Income Inequality in Transition Countries. Journal of Economic Integration, 22 (4), 888-928.
- Cevik, M. S. and Correa-Caro, C. (2015). Growing (un) equal: fiscal policy and income inequality in China and BRIC+. International Monetary Fund.
- Chase-Dunn, C. (1975). The effects of international economic dependence on development and inequality: A cross-national study. American Sociological Review, 40 (6), 720-738.
- Chintrakarn, P., Herzer, D., and Nunnenkamp, P. (2012). FDI and income inequality: Evidence from a panel of US states. Economic inquiry, 50(3), 788-801.
- Choi, E. K. (2007). North–South Trade and Income Inequality. International Review of Economics and Finance, 16(3), 347-356.
- Dabla-Norris, M. E., Kochhar, M. K., Suphaphiphat, M. N., Ricka, M. F., and Tsounta, E. (2015). Causes and Consequences of Income Inequality: A Global Perspective. IMF Staff Discussion Note No.15/13.
- Dorn, F., Fuest, C, and Potrafke, N. (2018). Gobalization and Income Inequality Revisited. European Commission Discussion Paper No. 056.
- Easterly, W. (2001). The Effect of International Monetary Fund and World Bank Programs on Poverty. Policy Research Working Paper Series No.2517, World Bank, Washington, DC.
- Feenstra, R.C. and Hanson, G.H. (1996). Globalization, Outsourcing, and Wage Inequality. American Economic Review, 86 (2), 240–45.
- Figini, P. and Görg, H. (1999). Multinational Companies and Wage Inequality in The Host Country: The Case of Ireland. Weltwirtschaftliches Archiv, 135(4), 594-612.
- Goldberg P. K. and Pavcnik N. (2004). Trade Inequality and Poverty: What Do We Know? Evidence from Recent Trade Liberalization Episodes in Developing Countries. NBER Working Paper No.10593.
- Goldberg, P.K. and Pavcnik, N. (2005). Trade, Wages, and the Political Economy of Trade Protection: Evidence from the Colombian Trade Reforms. Journal of International Economics, 66 (1), 75–105.
- Harrison, A. and Hanson, G. (1999). Trade and Wage Inequality in Mexico. Industrial and Labor Relations Review, 52, 271-288.
- Harrison, A. and Hanson, G. (1999). Who Gains from Trade Reform? Some Remaining Puzzles. Journal of Development Economics, 59 (1), 125-154.
- Hoechle D. (2007). Robust Standard Errors for Panel Regressions with Cross-Sectional Dependence. The Stata Journal, 7 (3), 281-312
- Jensen, N. M. and Rosas, G. (2007). Foreign Direct Investment and Income Inequality in Mexico, 1990–2000. International Organization, 61(3), 467-487.
- Lipsey, R. E., and Sjoholm, F. (2001). Foreign direct investment and wages in Indonesian manufacturing. NBER Working Paper Series No.8299.
- Mah, J. S. (2003). A Note on Globalization and Income Distribution—The Case of Korea, 1975–1995. Journal of Asian Economics, 14(1), 157-164.
- Mah, J. S. (2013). Globalization, Decentralization and Income Inequality: The case of China. Economic Modelling, 31, 653-658.
- Milanovic, B. (2005). Can We Discern the Effect of Globalization on Income Distribution? Evidence from Household Surveys. The World Bank Economic Review, 19(1), 21-44.
- Mundell, R. A. (1957). International Trade and Factor Mobility. The American Aconomic Review, 47(3), 321-335.
- Nunnenkamp, P., Schweickert, R., and Wiebelt, M. (2007). Distributional effects of FDI: how the interaction of FDI and economic policy affects poor households in Bolivia. Development policy review, 25(4), 429-450.
- Pavcnik, N., Blom, A., Goldberg, P. and Schady, N. (2004). Trade Liberalization and Industry Wage Structure: Evidence from Brazil. The World Bank Economic Review, 18(3), 319-344.
- Stiglitz, J. (2002). Globalisation and Its Discontents, Oxford University Press, Oxford.
- Stolper, W. F. and Samuelson, P. A. (1941). Protection and real wages. The Review of Economic Studies, 9(1), 58-73.
- Sylwester, K. (2005). Foreign Direct Investment, Growth and Income Inequality in Less Developed Countries. International Review of Applied Economics, 19(3), 289-300.
- Tridico, P. (2017). The Determinants of Income Inequality in OECD Countries. Cambridge Journal of Economics, 42(4), 1009-1042.
- Wei, S-J. and Wu, Y. (2007). Openness and Inequality: Evidence from Within China. (unpublished; Washington: International Monetary Fund).
- Vivarelli, M. (2013). Technology, Employment and Skills: An Interpretative Framework. Eurasian Business Review, 3, 66-89.
- Zhang, K. H. and Zhang, X. (2009). How Does Globalization Affect Regional Inequality Within a Developing Country? Evidence from China. Journal of Development Studies, 39(4), 47-67.
Abstract
Gelir eşitsizliği geçtiğimiz otuz yıl boyunca, özellikle gelişmekte olan ülkelerde ciddi bir miktarda arttı. Artan gelir eşitsizliği, küreselleşmenin hızla yayılmaya devam ettiği dönem ile örtüşmektedir. Bu çalışma, BRICS-T ülkeleri için 1990-2015 dönemini kapsayan bir panel veri seti kullanarak gelir eşitsizliği (net-Gini endeksi ile ölçülen) ve küreselleşme (finansal ve ticaret değişkenleri ile ölçülen) arasındaki ilişkiyi incelemektedir. Standart hataları düzeltilmiş panel verileri yöntemi ile farklı birçok model tahmin edilmiştir. Çalışmanın bulguları ticari küreselleşmenin gelir eşitsizliği üzerinde anlamlı bir etkiye sahip olmadığı yönündedir. Bunun yanısıra, hisse senedi piyasası devir hızı oranı, toplam varlık ve yükümlülükler ve sermaye hesabı açıklığı aracılığıyla finansal küreselleşme 1990’dan beri bu ülkelerde gelir eşitsizliğinin artmasındaki itici güç olmuştur.
Keywords
Gelir Eşitsizliği Ticari Küreselleşme Finansal Küreselleşme Net Gini Endeksi BRICS-T Ülkeleri
References
- Alderson, A. S. And Nielsen, F. (1999). Income Inequality, Development, And Dependence: A Reconsideration. American Sociological Review, 64 (4), 606-631.
- Bardhan, P. (2005). Globalization, Inequality, and Poverty: An Overview. University of California at Berkeley.
- Barro, R. J. (2000). Inequality and Growth in a Panel of Countries. Journal of Economic Growth, 5(1), 5-32.
- Beck, N. and Katz, J. N. (1995). What to do (and not to do) with time-series cross-section data. American political science review, 89(3), 634-647.
- Beck, T., Demirgüç-Kunt, A. and Levine, R. (2007). Finance, Inequality and the Poor. Journal of Economic Growth, 12(1), 27-49.
- Bhandari, B. (2007). Effect of Inward Foreign Direct Investment on Income Inequality in Transition Countries. Journal of Economic Integration, 22 (4), 888-928.
- Cevik, M. S. and Correa-Caro, C. (2015). Growing (un) equal: fiscal policy and income inequality in China and BRIC+. International Monetary Fund.
- Chase-Dunn, C. (1975). The effects of international economic dependence on development and inequality: A cross-national study. American Sociological Review, 40 (6), 720-738.
- Chintrakarn, P., Herzer, D., and Nunnenkamp, P. (2012). FDI and income inequality: Evidence from a panel of US states. Economic inquiry, 50(3), 788-801.
- Choi, E. K. (2007). North–South Trade and Income Inequality. International Review of Economics and Finance, 16(3), 347-356.
- Dabla-Norris, M. E., Kochhar, M. K., Suphaphiphat, M. N., Ricka, M. F., and Tsounta, E. (2015). Causes and Consequences of Income Inequality: A Global Perspective. IMF Staff Discussion Note No.15/13.
- Dorn, F., Fuest, C, and Potrafke, N. (2018). Gobalization and Income Inequality Revisited. European Commission Discussion Paper No. 056.
- Easterly, W. (2001). The Effect of International Monetary Fund and World Bank Programs on Poverty. Policy Research Working Paper Series No.2517, World Bank, Washington, DC.
- Feenstra, R.C. and Hanson, G.H. (1996). Globalization, Outsourcing, and Wage Inequality. American Economic Review, 86 (2), 240–45.
- Figini, P. and Görg, H. (1999). Multinational Companies and Wage Inequality in The Host Country: The Case of Ireland. Weltwirtschaftliches Archiv, 135(4), 594-612.
- Goldberg P. K. and Pavcnik N. (2004). Trade Inequality and Poverty: What Do We Know? Evidence from Recent Trade Liberalization Episodes in Developing Countries. NBER Working Paper No.10593.
- Goldberg, P.K. and Pavcnik, N. (2005). Trade, Wages, and the Political Economy of Trade Protection: Evidence from the Colombian Trade Reforms. Journal of International Economics, 66 (1), 75–105.
- Harrison, A. and Hanson, G. (1999). Trade and Wage Inequality in Mexico. Industrial and Labor Relations Review, 52, 271-288.
- Harrison, A. and Hanson, G. (1999). Who Gains from Trade Reform? Some Remaining Puzzles. Journal of Development Economics, 59 (1), 125-154.
- Hoechle D. (2007). Robust Standard Errors for Panel Regressions with Cross-Sectional Dependence. The Stata Journal, 7 (3), 281-312
- Jensen, N. M. and Rosas, G. (2007). Foreign Direct Investment and Income Inequality in Mexico, 1990–2000. International Organization, 61(3), 467-487.
- Lipsey, R. E., and Sjoholm, F. (2001). Foreign direct investment and wages in Indonesian manufacturing. NBER Working Paper Series No.8299.
- Mah, J. S. (2003). A Note on Globalization and Income Distribution—The Case of Korea, 1975–1995. Journal of Asian Economics, 14(1), 157-164.
- Mah, J. S. (2013). Globalization, Decentralization and Income Inequality: The case of China. Economic Modelling, 31, 653-658.
- Milanovic, B. (2005). Can We Discern the Effect of Globalization on Income Distribution? Evidence from Household Surveys. The World Bank Economic Review, 19(1), 21-44.
- Mundell, R. A. (1957). International Trade and Factor Mobility. The American Aconomic Review, 47(3), 321-335.
- Nunnenkamp, P., Schweickert, R., and Wiebelt, M. (2007). Distributional effects of FDI: how the interaction of FDI and economic policy affects poor households in Bolivia. Development policy review, 25(4), 429-450.
- Pavcnik, N., Blom, A., Goldberg, P. and Schady, N. (2004). Trade Liberalization and Industry Wage Structure: Evidence from Brazil. The World Bank Economic Review, 18(3), 319-344.
- Stiglitz, J. (2002). Globalisation and Its Discontents, Oxford University Press, Oxford.
- Stolper, W. F. and Samuelson, P. A. (1941). Protection and real wages. The Review of Economic Studies, 9(1), 58-73.
- Sylwester, K. (2005). Foreign Direct Investment, Growth and Income Inequality in Less Developed Countries. International Review of Applied Economics, 19(3), 289-300.
- Tridico, P. (2017). The Determinants of Income Inequality in OECD Countries. Cambridge Journal of Economics, 42(4), 1009-1042.
- Wei, S-J. and Wu, Y. (2007). Openness and Inequality: Evidence from Within China. (unpublished; Washington: International Monetary Fund).
- Vivarelli, M. (2013). Technology, Employment and Skills: An Interpretative Framework. Eurasian Business Review, 3, 66-89.
- Zhang, K. H. and Zhang, X. (2009). How Does Globalization Affect Regional Inequality Within a Developing Country? Evidence from China. Journal of Development Studies, 39(4), 47-67.
Details
| Primary Language | English |
|---|---|
| Subjects | Economics |
| Journal Section | Articles |
| Authors | |
| Publication Date | December 31, 2021 |
| Published in Issue | Year 2021 Volume: 5 Issue: 2 |
Cited By
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