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Globalization and Economic Inequality in the Short and Long Run: The Case of South Korea 1975-1995

Author

Listed:
  • Sumie

    (Graduate School of Economics, Kobe University)

  • Mototsugu Fukushige

    () (Graduate School of Economics, Osaka university)

Abstract

We have analyzed the determinants of the Gini coefficient for income and expenditure. In both cases, we do not find support for the Kuznets inverted-U hypothesis. From economic globalization viewpoint, the opening of goods markets reduces income inequality both in the short run (the Gini coefficient for income) and in the long run (the Gini coefficient for expenditure). On the other hand, the opening of capital markets increases income inequality both in the short and long run, but the latter is not statistically significant. These results suggest that the effect of economic globalization has two routes and two different speeds to affect income inequality.

Suggested Citation

  • Sumie & Mototsugu Fukushige, 2007. "Globalization and Economic Inequality in the Short and Long Run: The Case of South Korea 1975-1995," Discussion Papers in Economics and Business 07-43, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  • Handle: RePEc:osk:wpaper:0743
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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0743.pdf
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    References listed on IDEAS

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    Cited by:

    1. Sadullah Çelik & Ulkem Basdas, 2010. "How Does Globalization Affect Income Inequality? A Panel Data Analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(4), pages 358-370, November.
    2. Karacaovali, Baybars & Tabakis, Chrysostomos, 2017. "Wage inequality dynamics and trade exposure in South Korea," Journal of Asian Economics, Elsevier, vol. 48(C), pages 48-65.
    3. Parisa SAMIMI & Guan Choo LIM & Abdul Aziz BUANG, 2011. "Globalization Measurement: Notes on Common Globalization Indexes," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(7), pages 1-20, December.
    4. Lee, Siwook, 2017. "International trade and within-sector wage inequality: The case of South Korea," Journal of Asian Economics, Elsevier, vol. 48(C), pages 38-47.

    More about this item

    Keywords

    Globalization; Economic inequality; Gini coefficient; South Korea;

    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • D30 - Microeconomics - - Distribution - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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