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Distributional and Poverty Consequences of Globalization: A Dynamic Comparative Analysis for Developing Countries

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  • MacDonald, Ronald
  • Majeed, Muhammad Tariq

Abstract

This study examines the impact of globalization on cross-country inequality and poverty using a panel data set for 65 developing counties, over the period 1970-2008. With separate modelling for poverty and inequality, explicit control for financial intermediation, and comparative analysis for developing countries, the study attempts to provide a deeper understanding of cross country variations in income inequality and poverty. The major findings of the study are five fold. First, a non-monotonic relationship between income distribution and the level of economic development holds in all samples of countries. Second, both openness to trade and FDI do not have a favourable effect on income distribution in developing countries. Third, high financial liberalization exerts a negative and significant influence on income distribution in developing countries. Fourth, inflation seems to distort income distribution in all sets of countries. Finally, the government emerges as a major player in impacting income distribution in developing countries.

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Bibliographic Info

Paper provided by Scottish Institute for Research in Economics (SIRE) in its series SIRE Discussion Papers with number 2010-62.

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Date of creation: 2010
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Handle: RePEc:edn:sirdps:197

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Keywords: Globalization; Poverty; Inequality; FDI; Developing Countries;

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Citations

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Cited by:
  1. Muhammad Tariq Majeed & Ronald MacDonald, 2011. "Corruption and financial intermediation in a panel of regions: cross-border effects of corruption," Working Papers 2011_18, Business School - Economics, University of Glasgow.
  2. Majeed, Dr. Muhammad Tariq, 2013. "Inequality, Financial Development and Government: Evidence from Low-Income Developing Countries," MPRA Paper 50296, University Library of Munich, Germany.
  3. Majeed, Dr. Muhammad Tariq, 2013. "Inequality, Trade and Development: Evidence from Developing Countries," MPRA Paper 50337, University Library of Munich, Germany.
  4. Majeed, M Tariq, 2011. "Trade, Poverty and Employment: Empirical Evidence from Pakistan," MPRA Paper 45077, University Library of Munich, Germany.

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