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Globalization and Inequality in Different Economic Blocks

  • Seyed Komail Tayebi

    ()

    (Associate Professor, Department of Economics, University of Isfahan, Iran)

  • Sepideh Ohadi Esfahani

    (M. A. in Economics, Islamic Azad University, Khorasgan Branch)

Registered author(s):

    Now many scholars debate the different impacts of globalization on the economic behaviors of all nations, that globalization reduces or increases poverty, raises or drops wages and labor standards in societies and so on. Accordingly, we make in particular a question whether globalization affects income inequality in countries worldwide. The objective of this paper is thus to evaluate the effect of globalization on inequality among nations. We specify a panel income distribution regression model using cross-sectional data of the selected countries (including Iran) and relevant time series over 1985-2004. Several specified for globalization have significant and different effects on income distribution of countries with different levels of income. In our augmented model specification, we also evaluate an interacted effect of a block implementation (e.g. emerging market economies, high income, middle income and low income countries) with globalization on inequality. The results confirm this effect significantly on income inequality.

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    Article provided by Economics faculty of Tehran university in its journal Iranian Economic Review.

    Volume (Year): 14 (2009)
    Issue (Month): 2 (fall)
    Pages: 135-151

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    Handle: RePEc:eut:journl:v:14:y:2009:i:2:p:135
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    1. Paolo Figini & Holger Görg, 1999. "Multinational companies and wage inequality in the host country: The case of Ireland," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(4), pages 594-612, December.
    2. 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.
    3. François Bourguignon & Christian Morrisson, 2001. "Inequality among World Citizens : 1820-1992," DELTA Working Papers 2001-18, DELTA (Ecole normale supérieure).
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