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

Listed author(s):
  • E. Santarelli
  • P. Figini

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.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 459.

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Date of creation: 2002
Handle: RePEc:bol:bodewp:459
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  1. William Easterly, 2002. "The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550423, July.
  2. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 465-490.
  3. Ahluwalia, Montek S. & Carter, Nicholas G. & Chenery, Hollis B., 1979. "Growth and poverty in developing countries," Journal of Development Economics, Elsevier, vol. 6(3), pages 299-341, August.
  4. Giovanni Andrea Cornia & Nguyuru H. I. Lipumba, 1999. "The impact of the liberalization of the exchange rate and financial markets in sub-Saharan Africa. Editors' introduction," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(3), pages 317-319.
  5. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, vol. 10(3), pages 565-591, September.
  6. repec:dau:papers:123456789/10091 is not listed on IDEAS
  7. Jagdish Bhagwati, 2002. "Trade and Poverty in the Poor Countries," American Economic Review, American Economic Association, vol. 92(2), pages 180-183, May.
  8. Chen, Shaohua & Ravallion, Martin, 2001. "How Did the World's Poorest Fare in the 1990s?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 283-300, September.
  9. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
  10. Donald R. Davis, 1996. "Trade Liberalization and Income Distribution," NBER Working Papers 5693, National Bureau of Economic Research, Inc.
  11. Daron Acemoglu & Jaume Ventura, 2002. "The World Income Distribution," The Quarterly Journal of Economics, Oxford University Press, vol. 117(2), pages 659-694.
  12. Edwards, Sebastian, 1992. "Trade orientation, distortions and growth in developing countries," Journal of Development Economics, Elsevier, vol. 39(1), pages 31-57, July.
  13. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, vol. 10(3), pages 565-591, September.
  14. Eli Berman & John Bound & Zvi Griliches, 1993. "Changes in the Demand for Skilled Labor within U.S. Manufacturing Industries: Evidence from the Annual Survey of Manufacturing," NBER Working Papers 4255, National Bureau of Economic Research, Inc.
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