Asymmetric globalization: How trade, investment, and complexity shape inequality, emissions, and culture

This paper examines the asymmetric effects of economic globalization on income inequality, environmental outcomes, and cultural integration across 75 developed and developing countries from 2000 to 2022. Using fixed effects and System GMM estimators, the analysis uncovers systematic differences in how globalization shapes key development outcomes. In developing countries, trade and export complexity are linked to rising inequality and higher CO 2 emissions per capita, although dynamic estimates indicate that growing economic complexity can mitigate inequality over time. Trade also plays a stronger role in driving cultural globalization in these economies, amplifying both integration and exposure to cultural homogenization. By contrast, developed countries exhibit weaker and delayed responses across all dimensions, reflecting stronger institutional capacity and technological adaptation. FDI exerts limited and statistically insignificant effects in both groups. These findings underscore the need for differentiated policy approaches and contribute to debates on how structural conditions mediate globalization's impacts on equity, sustainability, and cultural resilience.