Globalisation and Income Inequality

This is the authors' abstract. We don't add key points for this paper.

This study explores the relationship between globalization and income inequality. By examining data from various countries, we investigate how globalization, which involves increased cross-border interactions in trade and investment, impacts the differences in income levels among individuals. We use different methods to analyze this connection, including static and dynamic approaches. Our findings indicate income inequality decreases in wealthier nations when countries open to international trade. However, the impact of globalization through foreign investment on income inequality is more complex and can vary. Additionally, as countries experience economic growth, income inequality tends to increase. While unemployment and inflation can contribute to higher income inequality, the extent of their influence depends on the analytical approach used. Overall, this research sheds light on the complex interplay between globalization and income inequality, highlighting the multifaceted factors that shape economic disparities on a global scale.