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The impact of globalization on income distribution: the Korean experience

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  • Jai Mah

Abstract

The paper examines the impact of changes in trade values and FDI inflows on the Gini coefficients for Korea. The empirical evidence shows that the concerned variables can, in general, be assumed to be integrated of order one. Johansen-Juselius cointegration tests reveal that the Gini coefficients tend to increase with trade liberalization measures and FDI inflows. That is, the progress of globalization tends to deteriorate the situation of income inequalities in Korea, which supports the Feenstra-Hanson (1997) hypothesis.

Suggested Citation

  • Jai Mah, 2002. "The impact of globalization on income distribution: the Korean experience," Applied Economics Letters, Taylor & Francis Journals, vol. 9(15), pages 1007-1009.
  • Handle: RePEc:taf:apeclt:v:9:y:2002:i:15:p:1007-1009
    DOI: 10.1080/13504850210149124
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    Citations

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    Cited by:

    1. Magda Kandil & Muhammad Shahbaz & Mantu Kumar Mahalik & Duc Khuong Nguyen, 2017. "The drivers of economic growth in China and India: globalization or financial development?," International Journal of Development Issues, Emerald Group Publishing, vol. 16(1), pages 54-84, April.
    2. repec:taf:applec:v:49:y:2017:i:52:p:5337-5351 is not listed on IDEAS
    3. repec:ebl:ecbull:v:4:y:2008:i:35:p:1-8 is not listed on IDEAS
    4. Luh, Yir-Hueih & Jiang, Wun-Ji & Huang, Szu-Chi, 2016. "Trade-related spillovers and industrial competitiveness: Exploring the linkages for OECD countries," Economic Modelling, Elsevier, vol. 54(C), pages 309-325.
    5. Ahsen Mukhtar & Muhammad Asif & Ghamz-e-Ali Siyal & Khalid Zaman, 2014. "Institutional-Macroeconomic Nexus: Inducement on Foreign Direct Investment (FDI) in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(11), pages 465-479, November.
    6. Svilena MIHAYLOVA, 2015. "Foreign direct investment and income inequality in Central and Eastern Europe," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(603), S), pages 23-42, Summer.
    7. Muhammad Shahbaz & Nanthakumar Loganathan & Aviral Tiwari & Reza Sherafatian-Jahromi, 2015. "Financial Development and Income Inequality: Is There Any Financial Kuznets Curve in Iran?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(2), pages 357-382, November.
    8. repec:agr:journl:v:2(602):y:2015:i:2(602):p:23-42 is not listed on IDEAS
    9. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
    10. Suanes, Macarena, 2016. "Foreign direct investment and income inequality in Latin America: a sectoral analysis," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    11. Natalia Melgar & Juliette Milgram & Máximo Rossi, 2009. "The role of macroeconomic performance in individual’s attitudes towards protectionism," Documentos de Trabajo (working papers) 0809, Department of Economics - dECON.
    12. Muhammad Shahbaz & Mita Bhattacharya & Mantu Kumar Mahalik, 2017. "Finance and income inequality in Kazakhstan: evidence since transition with policy suggestions," Applied Economics, Taylor & Francis Journals, vol. 49(52), pages 5337-5351, November.
    13. repec:rej:journl:v:16:y:2013:i:47:p:17-28 is not listed on IDEAS
    14. Baotai Wang & Ajit Dayanandan & Xiaofei Tian, 2008. "The Impact of Economic Globalization on Income Distribution: Empirical Evidence in China," Economics Bulletin, AccessEcon, vol. 4(35), pages 1-8.

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