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The Impact of Economic Globalization on Income Distribution: Empirical Evidence in China

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  • Baotai Wang

    ()
    (University of Northern BC)

  • Ajit Dayanandan

    ()
    (University of Northern BC)

  • Xiaofei Tian

    ()
    (Hebei University)

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    Abstract

    This study investigates the impact of economic globalization, as characterized by increasing international trade and foreign direct investment (FDI) flows, on income distribution in China. The Gini coefficients - the conventional measure of income inequality - are used in this study and the empirical investigation is conducted within the unit root and cointegration framework. The empirical results show that economic globalization tends to improve income inequality in China. Therefore, the worsening of income inequality in China must be caused by other factors.

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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume4/EB-08D30006A.pdf
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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 4 (2008)
    Issue (Month): 35 ()
    Pages: 1-8

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    Handle: RePEc:ebl:ecbull:eb-08d30006

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    Related research

    Keywords: Globalization;

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    References

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    1. Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras," NBER Working Papers 5122, National Bureau of Economic Research, Inc.
    2. Beyer, Harald & Rojas, Patricio & Vergara, Rodrigo, 1999. "Trade liberalization and wage inequality," Journal of Development Economics, Elsevier, vol. 59(1), pages 103-123, June.
    3. Jai Mah, 2002. "The impact of globalization on income distribution: the Korean experience," Applied Economics Letters, Taylor & Francis Journals, vol. 9(15), pages 1007-1009.
    4. Antonio Spilimbergo & Juan Luis Londoño & Miguel Székely, 1997. "Income Distribution, Factor Endowments, and Trade Openness," Research Department Publications 4088, Inter-American Development Bank, Research Department.
    5. Gregory, Allan W. & Hansen, Bruce E., 1996. "Residual-based tests for cointegration in models with regime shifts," Journal of Econometrics, Elsevier, vol. 70(1), pages 99-126, January.
    6. Ann Harrison & Gordon Hanson, 1999. "Who Gains from Trade Reform? Some Remaining Puzzles," NBER Working Papers 6915, National Bureau of Economic Research, Inc.
    7. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    8. Baotai Wang & D Ajit, 2006. "The Impact Of Globalization On Income Inequality: Empirical Evidence From Canada And India," The IUP Journal of Applied Economics, IUP Publications, vol. 0(6), pages 7-16, November.
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