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Does Globalization Reduce Poverty? Some Empirical Evidence for the Developing Countries

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  • E. Santarelli
  • P. Figini

Abstract

In this paper we address a key issue in the current debate on economic development: the effect of globalization on poverty. We review the empirical evidence on the relationship between globalization (broadly defined) and within-country poverty in the Developing Countries (Dcs). To measure globalization we use, among others, standard indices of trade openness, financial openness and privatization. To measure poverty we use both indices of relative and absolute poverty averaged over five and ten years. The use of relative poverty indices enables inquiry into a different dimension of poverty and provides additional information with respect to previous research. Both descriptive statistics and econometric analysis are used to sketch a few stylized facts in a very complex framework of relationships.

Suggested Citation

  • E. Santarelli & P. Figini, 2002. "Does Globalization Reduce Poverty? Some Empirical Evidence for the Developing Countries," Working Papers 459, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:459
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    Cited by:

    1. Paolo Figini & Holger Go¨rg, 2011. "Does Foreign Direct Investment Affect Wage Inequality? An Empirical Investigation," The World Economy, Wiley Blackwell, vol. 34(9), pages 1455-1475, September.
    2. Hummera Saleem & Malik Shahzad Shabbir & Syed Ali Raza Shah & Jalal Shah, 2021. "Nexus between Foreign Direct Investment and Poverty Reduction: A case of Pakistans," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 3(3), pages 272-280, December.
    3. Andrew Sumner & Meera Tiwari, 2005. "Poverty and economic policy: what happens when researchers disagree?," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(6), pages 791-801.
    4. Andrew Sumner, 2006. "Why Are We Still Arguing about Globalisation," Working Papers id:538, eSocialSciences.
    5. Chao-Hsi Huang & Kai-Fang Teng & Pan-Long Tsai, 2010. "Inward and outward foreign direct investment and poverty: East Asia vs. Latin America," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(4), pages 763-779, December.
    6. Babajide Fowowe & Mohammed Shuaibu, 2014. "Is foreign direct investment good for the poor? New evidence from African countries," Economic Change and Restructuring, Springer, vol. 47(4), pages 321-339, November.

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