The four components are the same as those of the Kearney index. The index is also estimated in several forms separated by different economic growth variables and in decomposed or composite forms.
The effect of the GINI index is also statistically adequate. Regression analysis is used to estimate the relationship between income inequality and globalization intensity. In others words, does international trade contribute to reduce or to worsen poverty and inequalities?
In a context of growing cooperation marked by increasing international transactions, the international trade which is a key component of globalization occupied a non-negligible position. Globalization and Poverty "The evidence strongly suggests that export growth and incoming foreign investment have reduced poverty everywhere from Mexico to India to Poland.
Globalization and Poverty yields several implications. Economic globalization includes flows of goods and services across borders, international capital flows, reduction in tariffs and trade barriers, immigration, and the spread of technology, and knowledge beyond borders.
The literature review on the links between globalization, economic growth and inequality follows in section 2. The authors classify the effects of globalization on inequality into five categories within and between countries.
Despite the increasing interests in the influence of globalization on economic growth and inequality, there are not many empirical studies examining the links between them.
As countries are speeding up their openness in recent years, there have been increasing concerns related to the globalization and its impacts on issues such as economic growth, poverty, inequality, regional differences, cultural dominance, environment, or economic integration.
Thus, the link between economic growth, inequality, poverty and globalization has become the focus of attention of many researchers. It is expected that the indices serve as useful tools in comparing the globalization process among countries and the evaluation of the globalization effect on economic development and income inequality.
A sociological definition apprehends inequality as the biased access of the members of the same society to different kinds of social goods Levy et al. The empirical results show that a low rank in the globalization process is due to conflicts, economic and technology factors with limited possibility for the developing countries to affect.
The main finding is that within a global economy characterized by an increasing distance of revenues between developed and developing countries; international trade can contribute to change things in a better way.
The mean values of GDP and GDP per capita are much higher than the median values with large standard deviations which show evidence of skewed distribution of GDP levels.
Thus, there is an urgent need for further research and methodological development at different levels and aspects to shed light on the issues. The Name and Definition of Indicators.
The theoretical literature on each component is vast but the empirical evidence on the nature and causal relationship between the different interrelated factors of interest remains poor.
It also investigated whether the growth effect of globalization depends on the income level of countries. The new index is estimated in different forms separated by different economic growth variables.
The data is a small panel data covering 62 countries observed during the period — but updated on an annual basis.The Relationship between Income Inequality, Poverty, and Globalization Almas Heshmati* June Abstract This paper introduces two composite indices of globalization.
The first is based on the Kearney/Foreign Policy magazine and the second is obtained from principal component analysis. The relationship between globalization and poverty is verified using regression models between poverty indicators (dependent variable) and the ratio of international trade (independent variable).
In the model, we add other interactive variables. The Relationship Between Income Inequality, Poverty, and Globalization This paper introduces two composite indices of globalization. The first is based on the Kearney/Foreign Policy magazine and the second is obtained from principal component analysis.
The Relationship Between Income Inequality, Poverty, and Globalization This paper introduces two composite indices of globalization. The first is based on the Kearney/Foreign Policy magazine and the second is obtained from principal component analysis. The relationship between globalization and poverty is complex, Harrison acknowledges, yet she says that a number of persuasive conclusions may be drawn from the studies in Globalization and Poverty.
The globalization index can be employed to quantify its impact on the difference in development or integration of countries, and the index can be used to study the causal relationship between globalization, income inequality and poverty.Download