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Liberalization, Globalization and Income Distribution

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Author Info

  • Cornia, G.A.

Abstract

This paper challenges this view. It argues that while income inequality declined in several nations between the 1950s and 1970s, this trend has been reversed during the last twenty years in two-thirds of the countries with adequate data. This conclusion is based on an econometric analysis of inequality trends for 77 countries accounting for 82 per cent of world population and 95 per cent of world GDP-PPP. Weighing the results by these two variables further strengthens these conclusions, which are supported also by a host of country and regional studies. his paper also suggests (without testing formally) that the traditional causes of income inequality (land concentration, unequal access to education, urban-rural gap, and so on) are unlikely to explain its rise over the last two decades. Such an increase is more likely to be related to shifts towards skill-intensive technologies and, even more so, to the adoption of the unfettered liberalization of domestic and international markets.

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Bibliographic Info

Paper provided by World Institute for Development Economics Research in its series Research Paper with number 157.

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Length: 22 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:wodeec:157

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Postal: United Nations University; World Institute for Development Economics Research, Katajanokanlaituri 6B, 00160 Helsinki
Phone: +358-9-6159911
Fax: +358-9-61599333
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Web page: http://www.wider.unu.edu/
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Related research

Keywords: INCOME DISTRIBUTION;

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Cited by:
  1. Paul Shaffer, 2008. "New Thinking on Poverty: Implications for Globalisation and Poverty Reduction Strategies," Working Papers 65, United Nations, Department of Economics and Social Affairs.
  2. Dagdeviren, Hulya & van der Hoeven, Rolph & Weeks, John, 2002. "Redistribution Does Matter Growth and Redistribution for Poverty Reduction," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Heshmati, Almas, 2004. "Growth, Inequality and Poverty Relationships," IZA Discussion Papers 1338, Institute for the Study of Labor (IZA).
  4. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute for the Study of Labor (IZA).
  5. Stefano Pettinato, 2002. "A Conceptual Primer on the Currents and Trends in Inequality," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 3(1), pages 23-56.
  6. Lahimer, Noomen, 2009. "Les IDE et le triangle « Croissance-Inégalités- Pauvreté » dans les pays en voie de développement," Economics Papers from University Paris Dauphine 123456789/5548, Paris Dauphine University.
  7. Checchi, D., 2000. "Does Educational Achievement Help to Explain Income Inequality?," Research Paper 208, World Institute for Development Economics Research.
  8. FFF1Alberto NNN1Minujin & FFF2Enrique NNN2Delamonica, 2004. "Socio-economic inequalities in mortality and health in the developing world," Demographic Research Special Collections, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 2(13), pages 331-354, April.
  9. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA).
  10. Horácio C. Faustino & Carim Vali, 2011. "The Effects of Globalisation on OECD Income Inequality: A static and dynamic analysis," Working Papers Department of Economics 2011/12, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  11. Alemayehu Geda, 2006. "Openness, Inequality and Poverty in Africa," Working Papers 25, United Nations, Department of Economics and Social Affairs.
  12. Lahimer, Noomen, 2009. "La contribution des investissements directs étrangers à la réduction de la pauvreté en Afrique subsaharienne," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/1167 edited by Goaied, Mohamed & Bienaymé, Alain.
  13. Cagatay, Nilüfer & Ertürk, Korkuk, 2004. "Gender and globalization : a macroeconomic perspective," ILO Working Papers 370974, International Labour Organization.

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