Title:

The effects of globalization and economic growth on income inequality: evidence for 24 OECD countries

Group publication title:

Argumenta Oeconomica

Creator:

Faustino, Horácio C. ; Vali, Carim

Subject and Keywords:

globalization ; economic growth ; budget revenue ; panel data ; globalizacja ; wzrost gospodarczy ; dochody budżetowe ; dane panelowe

Description:

Argumenta Oeconomica, 2013, Nr 1 (30), s. 13-32

Abstrakt:

Using the World Income Inequality Database and static and dynamic panel data analyses, this paper analyses the correlation between income inequality in the OECD countries and economic globalization, measured by trade openness and foreign direct investment, for the period 1995-2007. The static analysis, conducted by means of the fixed- effects estimator, suggests that trade openness reduces inequality, whereas FDI is positively linked to inequality. Some control variables, such as unemployment and inflation, also have a positive effect on inequality. When we control for endogeneity, using the system GMM estimator with the Windmeijer correction for small samples, the results also show that trade openness decreases income inequality and that the FDI effect on inequality is not significant. The country's economic growth causes inequality to increase, according to the findings of both our static and dynamic analyses. The Washington Consensus seems to be inconsistent

Publisher:

Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu

Place of publication:

Wrocław

Date:

2013

Resource Type:

artykuł

Format:

application/pdf

Language:

eng

Relation:

Argumenta Oeconomica, 2013, Nr 1 (30)

Rights:

Wszystkie prawa zastrzeżone (Copyright)

Access Rights:

Dla wszystkich w zakresie dozwolonego użytku

Location:

Uniwersytet Ekonomiczny we Wrocławiu