The Relationship between Income Inequality, Poverty, and Globalization
This paper introduces two composite indices of globalisation. The first is based on the Kearney/Foreign Policy magazine and the second is obtained from principal component analysis. They indicate the level of globalisation and show how globalisation has developed over time for different countries. The indices are composed of four components: economic integration, personal contact, technology and political engagement, each generated from a number of indicators. A breakdown of the index into major components provides possibilities to identify sources of globalisation at the country level and associate it with economic policy measures. The empirical results show that a low rank in the globalisation process is due to political and personal factors with limited possibility for the developing countries to affect. The high ranked developed countries share similar patterns in distribution of various components. The indices were also used in a regression analysis to study the causal relationships between income inequality, poverty and globalisation. Inequality is negatively correlated to globalisation, and globalisation reduces poverty.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: Katajanokanlaituri 6B, 00160 Helsinki|
Web page: http://www.wider.unu.edu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Khan, Azizur Rahman & Riskin, Carl, 2001. "Inequality and Poverty in China in the Age of Globalization," OUP Catalogue, Oxford University Press, number 9780195136494, May.
- Paolo Manasse & Alessandro Turrini, .
"Trade, Wages and "Superstars","
140, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Kevin H. O'Rourke, 2001.
"Globalization and Inequality: Historical Trends,"
NBER Working Papers
8339, National Bureau of Economic Research, Inc.
- O'Rourke, Kevin Hjortshøj, 2001. "Globalization and Inequality: Historical Trends," CEPR Discussion Papers 2865, C.E.P.R. Discussion Papers.
- K. H. O'Rourke, 2001. "Globalization and Inequality: Historical Trends," CEG Working Papers 20015, Trinity College Dublin, Department of Economics.
- K. H. O'Rourke, 2001. "Globalization and Inequality: Historical Trends," Trinity Economics Papers 20019, Trinity College Dublin, Department of Economics.
- Shahid Yusuf, 2003.
"Globalisation and the Challenge for Developing Countries,"
Journal of African Economies,
Centre for the Study of African Economies (CSAE), vol. 12(Supplemen), pages 35-72, February.
- Yusuf, Shahid, 2001. "Globalization and the challenge for developing countries," Policy Research Working Paper Series 2618, The World Bank.
- Jeffrey James, 2002. "Technology, Globalization and Poverty," Books, Edward Elgar Publishing, number 2185.
- Jeffrey G. Williamson, 2002. "Winners and Losers Over Two Centuries of Globalization," NBER Working Papers 9161, National Bureau of Economic Research, Inc.
- Farhad Noorbakhsh, 1998. "The human development index: some technical issues and alternative indices," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(5), pages 589-605.
- Amartya K Sen, 2002. "Globalization, Inequality and Global Protest," Development, Palgrave Macmillan, vol. 45(2), pages 11-16, June.
- Michael Mussa, 2003. "Meeting the Challenges of Globalisation," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(Supplemen), pages 14-34, February.
- Calderon, Cesar & Chong, Alberto, 2001. "External sector and income inequality in interdependent economies using a dynamic panel data approach," Economics Letters, Elsevier, vol. 71(2), pages 225-231, May.
- Miller, Tracy C., 2001. "Impact of globalization on U.S. wage inequality: Implications for policy," The North American Journal of Economics and Finance, Elsevier, vol. 12(3), pages 219-242, November.
- Eckel, Carsten, 2003.
"Labor market adjustments to globalization: Unemployment versus relative wages,"
Munich Reprints in Economics
20538, University of Munich, Department of Economics.
- Eckel, Carsten, 2003. "Labor market adjustments to globalization: unemployment versus relative wages," The North American Journal of Economics and Finance, Elsevier, vol. 14(2), pages 173-188, August.
- Jörg MAYER, 2000. "Globalization, Technology Tranfer And Skill Accumulation In Low-Income Countries," UNCTAD Discussion Papers 150, United Nations Conference on Trade and Development.
- S. Ibi Ajayi, 2003. "Globalisation and Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(Supplemen), pages 120-150, February.
- Suthiph, Chirathivat & Murshed, S. Mansoob, 2001. "Globalization and Openness: Lessons from the Recent Crisis in Southeast Asia," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Collier, Paul & Dollar, David, 2000.
"Can the world cut poverty in half ? how policy reform and effective aid can meet international development goals,"
Policy Research Working Paper Series
2403, The World Bank.
- Collier, Paul & Dollar, David, 2001. "Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals," World Development, Elsevier, vol. 29(11), pages 1787-1802, November.
- David L. Bevan & Augustin Kwasi Fosu, 2003. "Globalisation: An Overview," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(Supplemen), pages 1-13, February.
- Collier, Paul & Dollar, David, 1999.
"Aid allocation and poverty reduction,"
Policy Research Working Paper Series
2041, The World Bank.
- Ravallion, Martin, 2003.
"The debate on globalization, poverty, and inequality : why measurement matters,"
Policy Research Working Paper Series
3038, The World Bank.
- Martin Ravallion, 2004. "The Debate on Globalization, Poverty and Inequality: why Measurement Matters," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
- Peter H. Lindert & Jeffrey G. Williamson, 2001.
"Does Globalization Make the World More Unequal?,"
NBER Working Papers
8228, National Bureau of Economic Research, Inc.
- J. Stiglitz, 1998. "More Instruments and Broader Goals: Moving toward the PostWashington Consensus," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 8.
- Solimano, Andrés, 2001. "The evolution of world income inequality: assessing the impact of globalization," Macroeconomía del Desarrollo 11, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
- Ngaire Woods, 1998. "Editorial introduction. Globalization: Definitions, debates and implications," Oxford Development Studies, Taylor & Francis Journals, vol. 26(1), pages 5-13.
- Seshanna, Shubhasree & Decornez, Stephane, 2003. "Income polarization and inequality across countries: an empirical study," Journal of Policy Modeling, Elsevier, vol. 25(4), pages 335-358, June.
- Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592, June.
- Christine Meyer, 1999. "Globalisation and rising inequality in developed countries," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 1(1), pages 108-118.
- Branko milanovic, 2003.
"True world income distribution, 1988 and 1993: First calculation based on household surveys alo,"
- Branko Milanovic, 2002. "True World Income Distribution, 1988 and 1993: First Calculation Based on Household Surveys Alone," Economic Journal, Royal Economic Society, vol. 112(476), pages 51-92, January.
- Graham, Carol, 2005. "Globalization, Poverty, Inequality, and Insecurity: Some Insights from the Economics of Happiness," Working Paper Series RP2005/33, World Institute for Development Economic Research (UNU-WIDER).
- Andersen, Torben M. & Herbertsson, Tryggvi Thor, 2003. "Measuring Globalization," IZA Discussion Papers 817, Institute for the Study of Labor (IZA).
- Heshmati Almas, 2006. "Measurement of a Multidimensional Index of Globalization," Global Economy Journal, De Gruyter, vol. 6(2), pages 1-30, May.
- Nissanke, Machiko & Thorbecke, Erik, 2005. "Channels and Policy Debate in the Globalization-Inequality-Poverty Nexus," Working Paper Series DP2005/08, World Institute for Development Economic Research (UNU-WIDER).
- Michael D. Bordo & Barry Eichengreen & Douglas A. Irwin, 1999. "Is Globalization Today Really Different than Globalization a Hunderd Years Ago?," NBER Working Papers 7195, National Bureau of Economic Research, Inc.
- Heshmati, Almas, 2003. "Measurement of a Multidimentional Index of Globalization and its Impact on Income Inequality," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:rp2005-37. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse)The email address of this maintainer does not seem to be valid anymore. Please ask Bruck Tadesse to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.