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Do liberalization and globalization increase income inequality?

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Author

Summary, in English

Abstract in Undetermined
Using the Standardized World Income Inequality Database, we examine if the KOF Index of Globalization and the Economic Freedom Index of the Fraser institute are related to within-country income inequality using panel data covering around 80 countries 1970–2005. Freedom to trade internationally is robustly related to inequality, also when adding several control variables and controlling for potential endogeneity using GMM. Social globalization and deregulation is also linked to inequality. Reforms towards economic freedom seem to increase inequality mainly in rich countries, and social globalization is more important in less developed countries. Monetary reforms, legal reforms and political globalization do not increase inequality.

Publishing year

2010

Language

English

Pages

488-505

Publication/Series

European Journal of Political Economy

Volume

26

Issue

4

Document type

Journal article

Publisher

Tranfer Verlag, Regensburg, FRG

Topic

  • Economics

Keywords

  • Liberalization
  • Economic freedom
  • Globalization
  • Income inequality
  • Institutions

Status

Published

ISBN/ISSN/Other

  • ISSN: 0176-2680