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The Impact Of Globalization On Income Inequality: Empirical Evidence From Canada And India

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  • Baotai Wang
  • D Ajit
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    Abstract

    This study investigates the impact of the recent economic globalization, which may be characterized by increasing international trade values and Foreign Direct Investment (FDI) flows, on income inequality in Canada and India. The Gini coefficient the conventional measure of income inequality is used for this empirical investigation and the investigation is conducted within the unit root and cointegration framework. The empirical results show that economic globalization has a clear impact on income inequality in both Canada and India. Specifically, trade liberalization has a favorable impact on inequalities in Canada, while it has an adverse one in India. FDI, on the other hand, also has an asymmetrical impact on income inequalities: it tends to worsen inequalities in Canada, while it ameliorates inequalities in India.

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    Bibliographic Info

    Article provided by IUP Publications in its journal The IUP Journal of Applied Economics.

    Volume (Year): V (2006)
    Issue (Month): 6 (November)
    Pages: 7-16

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    Handle: RePEc:icf:icfjae:v:05:y:2006:i:6:p:7-16

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    Cited by:
    1. Baotai Wang & Ajit Dayanandan & Xiaofei Tian, 2008. "The Impact of Economic Globalization on Income Distribution: Empirical Evidence in China," Economics Bulletin, AccessEcon, vol. 4(35), pages 1-8.

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