Globalization and Economic Inequality in the Short and Long Run: The Case of South Korea 1975-1995
AbstractWe have analyzed the determinants of the Gini coefficient for income and expenditure. In both cases, we do not find support for the Kuznets inverted-U hypothesis. From economic globalization viewpoint, the opening of goods markets reduces income inequality both in the short run (the Gini coefficient for income) and in the long run (the Gini coefficient for expenditure). On the other hand, the opening of capital markets increases income inequality both in the short and long run, but the latter is not statistically significant. These results suggest that the effect of economic globalization has two routes and two different speeds to affect income inequality.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 07-43.
Length: 17 pages
Date of creation: Nov 2007
Date of revision:
Globalization; Economic inequality; Gini coefficient; South Korea;
Other versions of this item:
- Sato, Sumie & Fukushige, Mototsugu, 2009. "Globalization and economic inequality in the short and long run: The case of South Korea 1975-1995," Journal of Asian Economics, Elsevier, vol. 20(1), pages 62-68, January.
- R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
- D30 - Microeconomics - - Distribution - - - General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-17 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Patrick Vanhoudt, 2000.
"An assessment of the macroeconomic determinants of inequality,"
Taylor & Francis Journals, vol. 32(7), pages 877-883.
- Vanhoudt, Patrick, 1998. "An Assessment of the Macroeconomic Determinants of Inequality," Working Paper Series in Economics and Finance 271, Stockholm School of Economics.
- VANHOUDT, Patrick, 1997. "An assessment of the macroeconomic determinants of inequality," SESO Working Papers 1997007, University of Antwerp, Faculty of Applied Economics.
- Robert J. Barro, 1989.
"Economic Growth in a Cross Section of Countries,"
NBER Working Papers
3120, National Bureau of Economic Research, Inc.
- A. Gelan & G. N. Price, 2003. "African economies and the Kuznets curve: an exploratory investigation," Applied Economics Letters, Taylor & Francis Journals, vol. 10(12), pages 747-751.
- Angus Deaton & Christina Paxson, 1993.
"Intertemporal Choice and Inequality,"
NBER Working Papers
4328, National Bureau of Economic Research, Inc.
- Changkyu Choi, 2006. "Does foreign direct investment affect domestic income inequality?," Applied Economics Letters, Taylor & Francis Journals, vol. 13(12), pages 811-814.
- Beyer, Harald & Rojas, Patricio & Vergara, Rodrigo, 1999. "Trade liberalization and wage inequality," Journal of Development Economics, Elsevier, vol. 59(1), pages 103-123, June.
- Fukushige, Mototsugu, 1989. "A new approach to the economic inequality based upon the permanent income hypothesis," Economics Letters, Elsevier, vol. 29(2), pages 183-187.
- Fukushige, Mototsugu, 1996. "Annual redistribution and lifetime redistribution," Economics Letters, Elsevier, vol. 52(3), pages 269-273, September.
- Jong-Eun Lee, 2006. "Does globalization matter to income distribution in Asia?," Applied Economics Letters, Taylor & Francis Journals, vol. 13(13), pages 851-855.
- Kang Park, 1998. "Distribution and growth: cross-country evidence," Applied Economics, Taylor & Francis Journals, vol. 30(7), pages 943-949.
- Blejer, Mario I & Guerrero, Isabel, 1990. "The Impact of Macroeconomic Policies on Income Distribution: An Empirical Study of the Philippines," The Review of Economics and Statistics, MIT Press, vol. 72(3), pages 414-23, August.
- Shujie Yao, 2006. "On economic growth, FDI and exports in China," Applied Economics, Taylor & Francis Journals, vol. 38(3), pages 339-351.
- Almas Heshmati, 2006. "Conditional and unconditional inequality and growth relationships," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 925-931.
- Dollar, David, 2004.
"Globalization, poverty, and inequality since 1980,"
Policy Research Working Paper Series
3333, The World Bank.
- Feenstra, Robert C. & Hanson, Gordon H., 1997.
"Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras,"
Journal of International Economics,
Elsevier, vol. 42(3-4), pages 371-393, May.
- 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.
- Papanek, Gustav F. & Kyn, Oldrich, 1986. "The effect on income distribution of development, the growth rate and economic strategy," Journal of Development Economics, Elsevier, vol. 23(1), pages 55-65, September.
- Jeffrey G. Williamson, 1996.
"Globalization and Inequality Past and Present,"
NBER Working Papers
5491, National Bureau of Economic Research, Inc.
- Nissanke, Machiko & Thorbecke, Erik, 2006. "Channels and policy debate in the globalization-inequality-poverty nexus," World Development, Elsevier, vol. 34(8), pages 1338-1360, August.
- Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
- Fields, Gary S & Yoo, Gyeongjoon, 2000. "Falling Labor Income Inequality in Korea's Economic Growth: Patterns and Underlying Causes," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 139-59, June.
- Parisa SAMIMI & Guan Choo LIM & Abdul Aziz BUANG, 2011. "Globalization Measurement: Notes on Common Globalization Indexes," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(7), pages 20, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Atsuko SUZUKI).
If references are entirely missing, you can add them using this form.