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Does economic globalisation affect income inequality? A meta‐analysis

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  • Philipp Heimberger

Abstract

A large volume of econometric literature has studied the impact of economic globalisation on income inequality around the world. However, reported econometric estimates vary substantially, which makes it difficult to draw valid conclusions. This paper presents a quantitative summary and analysis of existing estimates regarding the globalisation–inequality relationship. We use a new data set consisting of 1,254 observations from 123 primary studies. By applying meta‐analysis and meta‐regression methods, we obtain several main findings. First, globalisation has a (small‐to‐moderate) inequality‐increasing effect. Second, while the effect of trade globalisation is small, financial globalisation shows a more sizeable and significantly stronger inequality‐increasing impact. Third, we find an average inequality‐increasing impact of globalisation in both advanced and developing countries. Fourth, education and technology moderate the impact of globalisation on income inequality.

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  • Philipp Heimberger, 2020. "Does economic globalisation affect income inequality? A meta‐analysis," The World Economy, Wiley Blackwell, vol. 43(11), pages 2960-2982, November.
    • Handle: RePEc:bla:worlde:v:43:y:2020:i:11:p:2960-2982
    DOI: 10.1111/twec.13007
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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F6 - International Economics - - Economic Impacts of Globalization
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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