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Has the increase in world-wide openness to trade worsened global income inequality?


  • Saurav Dev Bhatta


This article contributes to our understanding of the relationship between globalization and world income inequality by analyzing the trend in global inequality for the period 1960–1989. Using Penn World Tables data and time-series econometric techniques, it analyzes how the increase in worldwide openness to trade has been related to global income inequality during this period. When differential population growth rates among the countries are taken into account, the results indicate that (i) global income inequality exhibited a downward trend between 1960 and 1989, and (ii) while there is a positive relationship between inequality and openness, the relationship is not statistically significant. Copyright Regional Science Association International (RSAI) Urbana, USA 2002

Suggested Citation

  • Saurav Dev Bhatta, 2002. "Has the increase in world-wide openness to trade worsened global income inequality?," Review of Economic Design, Springer;Society for Economic Design, vol. 81(2), pages 177-196, April.
  • Handle: RePEc:spr:reecde:v:81:y:2002:i:2:p:177-196
    DOI: 10.1007/s101100200104

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    Cited by:

    1. Gouranga Das & Hiranya Nath & Halis Murat Yildiz, 2009. "International Productivity Differences and the Roles of Domestic Investment, FDI and Trade," International Economic Journal, Taylor & Francis Journals, vol. 23(1), pages 121-142.
    2. Ulu, Mustafa Ilker, 2018. "The effect of government social spending on income inequality in oecd: a panel data analysis," MPRA Paper 91104, University Library of Munich, Germany.
    3. Bukhari, Mahnoor & Munir, Kashif, 2016. "Impact of Globalization on Income Inequality in Selected Asian Countries," MPRA Paper 74248, University Library of Munich, Germany.

    More about this item


    JEL classification: R11; Key words: Globalization; global inequality; trade; time-series;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes


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