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Liberalization, Globalization and Income Distribution

Author

Listed:
  • Cornia, G.A.

Abstract

This paper challenges this view. It argues that while income inequality declined in several nations between the 1950s and 1970s, this trend has been reversed during the last twenty years in two-thirds of the countries with adequate data. This conclusion is based on an econometric analysis of inequality trends for 77 countries accounting for 82 per cent of world population and 95 per cent of world GDP-PPP. Weighing the results by these two variables further strengthens these conclusions, which are supported also by a host of country and regional studies. his paper also suggests (without testing formally) that the traditional causes of income inequality (land concentration, unequal access to education, urban-rural gap, and so on) are unlikely to explain its rise over the last two decades. Such an increase is more likely to be related to shifts towards skill-intensive technologies and, even more so, to the adoption of the unfettered liberalization of domestic and international markets.

Suggested Citation

  • Cornia, G.A., 1999. "Liberalization, Globalization and Income Distribution," Research Paper 157, World Institute for Development Economics Research.
  • Handle: RePEc:fth:wodeec:157
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    Citations

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    Cited by:

    1. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute for the Study of Labor (IZA).
    2. repec:dau:papers:123456789/5548 is not listed on IDEAS
    3. Stefano Pettinato, 2002. "A Conceptual Primer on the Currents and Trends in Inequality," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 3(1), pages 23-56.
    4. Lahimer, Noomen, 2009. "La contribution des investissements directs étrangers à la réduction de la pauvreté en Afrique subsaharienne," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/1167 edited by Goaied, Mohamed & Bienaymé, Alain, August.
    5. Dagdeviren, Hulya & van der Hoeven, Rolph & Weeks, John, 2002. "Redistribution Does Matter Growth and Redistribution for Poverty Reduction," WIDER Working Paper Series 005, World Institute for Development Economic Research (UNU-WIDER).
    6. Ocampo, José Antonio, 2001. "A new look at the development agenda," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    7. Daniele Checchi, 2000. "Does educational achievement help to explain income inequality?," Departmental Working Papers 2000-11, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    8. -, 2003. "A decade of light and shadow: Latin America and the Caribbean in the 1990s," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 76 edited by Eclac.
    9. Horácio C. Faustino & Carim Vali, 2011. "The Effects of Globalisation on OECD Income Inequality: A static and dynamic analysis," Working Papers Department of Economics 2011/12, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    10. Carol Graham & Stefano Pettinato & Nancy Birdsall, 2000. "Stuck in the Tunnel: Is Globalization Muddling the Middle Class?," LIS Working papers 277, LIS Cross-National Data Center in Luxembourg.
    11. FFF1Alberto NNN1Minujin & FFF2Enrique NNN2Delamonica, 2004. "Socio-economic inequalities in mortality and health in the developing world," Demographic Research Special Collections, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 2(13), pages 331-354, April.
    12. repec:ilo:ilowps:370974 is not listed on IDEAS
    13. repec:eee:crpeac:v:43:y:2017:i:c:p:125-148 is not listed on IDEAS
    14. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA).
    15. Paul Shaffer, 2008. "New Thinking on Poverty: Implications for Globalisation and Poverty Reduction Strategies," Working Papers 65, United Nations, Department of Economics and Social Affairs.
    16. Alemayehu Geda, 2006. "Openness, Inequality and Poverty in Africa," Working Papers 25, United Nations, Department of Economics and Social Affairs.
    17. Cagatay, Nilüfer. & Ertürk, Korkuk., 2004. "Gender and globalization : a macroeconomic perspective," ILO Working Papers 993709743402676, International Labour Organization.
    18. Franco, Rolando & Sáinz, Pedro, 2001. "The Latin American social agenda in the year 2000," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    19. Heshmati, Almas, 2004. "Growth, Inequality and Poverty Relationships," IZA Discussion Papers 1338, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    INCOME DISTRIBUTION;

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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