IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_683.html
   My bibliography  Save this paper

Did Partial Globalization Increase Inequality? Did Inequality Stimulate Globalization Backlash? The case of the Latin American Periphery, 1950-80

Author

Listed:
  • Jörg Baten

Abstract

Inequality is an important threat to the globalization of the world economy that we experience today. This contribution uses a new measure of inequality: heigth inequality. It covers not only wage recipients, but also the self-employed, the unemployed, housewifes, children, and other groups who may not be participating in a market economy, for the 1950-80 period. It turns out that within-country inequality is higher in time periods of greater openness. We also find that inequality leads to a “globalization backlash“. The closing of commodity and capital markets did always take place during – or 5-10 years after – inequality peaks.

Suggested Citation

  • Jörg Baten, 2002. "Did Partial Globalization Increase Inequality? Did Inequality Stimulate Globalization Backlash? The case of the Latin American Periphery, 1950-80," CESifo Working Paper Series 683, CESifo.
    • Handle: RePEc:ces:ceswps:_683
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo_wp683.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 465-490.
    2. John Komlos, 1989. "Nutrition and Economic Development in the Eighteenth-Century Habsburg Monarchy: An Anthropometric History," Books by John Komlos, Department of Economics, University of Munich, number 2, June.
    3. T. Paul Schultz, 1998. "Inequality in the distribution of personal income in the world: How it is changing and why," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(3), pages 307-344.
    4. James A. Robinson, 2001. "Where Does Inequality Come From?: Ideas and Implications for Latin America," OECD Development Centre Working Papers 188, OECD Publishing.
    5. Jean-Marc Burniaux & Thai-Thanh Dang & Douglas Fore & Michael Förster & Marco Mira d'Ercole & Howard Oxley, 1998. "Income Distribution and Poverty in Selected OECD Countries," OECD Economics Department Working Papers 189, OECD Publishing.
    6. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," The World Bank Economic Review, World Bank, vol. 11(1), pages 33-57, January.
    7. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 35-52.
    8. Ross, D. & Sabot, R. & Birdsall, N., 1995. "Inequality and Growth Reconsidered," Center for Development Economics 142, Department of Economics, Williams College.
    9. Birdsall, Nancy & Ross, David & Sabot, Richard, 1995. "Inequality and Growth Reconsidered: Lessons from East Asia," The World Bank Economic Review, World Bank, vol. 9(3), pages 477-508, September.
    10. Roland Bénabou, 1996. "Inequality and Growth," NBER Chapters, in: NBER Macroeconomics Annual 1996, Volume 11, pages 11-92, National Bureau of Economic Research, Inc.
    11. Clarke, George R. G., 1995. "More evidence on income distribution and growth," Journal of Development Economics, Elsevier, vol. 47(2), pages 403-427, August.
    12. Pradhan, Menno & Sahn, David E. & Younger, Stephen D., 2003. "Decomposing world health inequality," Journal of Health Economics, Elsevier, vol. 22(2), pages 271-293, March.
    13. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
    14. Angus Deaton, 2001. "Relative Deprivation, Inequality, and Mortality," NBER Working Papers 8099, National Bureau of Economic Research, Inc.
    15. Francisco Rodríguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338, National Bureau of Economic Research, Inc.
    16. repec:pri:cheawb:deaton_relative_deprivation is not listed on IDEAS
    17. Ben S. Bernanke & Julio J. Rotemberg (ed.), 1996. "NBER Macroeconomics Annual 1996," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522225, December.
    18. Gloria Quiroga & Sebastian Coll, 2000. "Income Distribution in the Mirror of Height Differences, The Case of Spain: 1895-1950," Journal of Income Distribution, Ad libros publications inc., vol. 9(1), pages 7-7, June.
    19. Peter H. Lindert & Jeffrey G. Williamson, 2003. "Does Globalization Make the World More Unequal?," NBER Chapters, in: Globalization in Historical Perspective, pages 227-276, National Bureau of Economic Research, Inc.
    20. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
    21. Baten, Jörg & Komlos, John, 1998. "Height and the Standard of Living," The Journal of Economic History, Cambridge University Press, vol. 58(3), pages 866-870, September.
    22. Robert Frank, 2000. "Does Growing Inequality Harm the Middle Class?," Eastern Economic Journal, Eastern Economic Association, vol. 26(3), pages 253-264, Summer.
    23. John Komlos, "undated". "Stature and Nutrition in the Habsburg Monarchy: The Standard of Living and Economic Development," Articles by John Komlos 36, Department of Economics, University of Munich.
    24. Alesina, Alberto & Perotti, Roberto, 1994. "The Political Economy of Growth: A Critical Survey of the Recent Literature," The World Bank Economic Review, World Bank, vol. 8(3), pages 351-371, September.
    25. Fogel, Robert W, 1994. "Economic Growth, Population Theory, and Physiology: The Bearing of Long-Term Processes on the Making of Economic Policy," American Economic Review, American Economic Association, vol. 84(3), pages 369-395, June.
    26. Barro, Robert J, 2000. "Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    27. J. W. Drukker & Vincent Tassenaar, 1997. "Paradoxes of Modernization and Material Well-Being in the Netherlands during the Nineteenth Century," NBER Chapters, in: Health and Welfare during Industrialization, pages 331-378, National Bureau of Economic Research, Inc.
    28. Murray, John E., 1997. "Standards of the Present for People of the Past: Height, Weight, and Mortality among Men of Amherst College, 1834–1949," The Journal of Economic History, Cambridge University Press, vol. 57(3), pages 585-606, September.
    29. repec:pri:cheawb:deaton_relative_deprivation.pdf is not listed on IDEAS
    30. Boltho, Andrea & Toniolo, Gianni, 1999. "The Assessment: The Twentieth Century--Achievements, Failures, Lessons," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 15(4), pages 1-17, Winter.
    31. J. L. Van Zanden, 1995. "Tracing the beginning of the Kuznets curve: western Europe during the early modern period," Economic History Review, Economic History Society, vol. 48(4), pages 643-664, November.
    32. Wood, Adrian, 1998. "Globalisation and the Rise in Labour Market Inequalities," Economic Journal, Royal Economic Society, vol. 108(450), pages 1463-1482, September.
    33. Robert E. Gallman & John Joseph Wallis, 1992. "American Economic Growth and Standards of Living before the Civil War," NBER Books, National Bureau of Economic Research, Inc, number gall92-1, July.
    34. Joerg Baten, 2000. "Economic Development and the Distribution of Nutritional Resources in Bavaria, 1797-1839: An Anthropometric Study," Journal of Income Distribution, Ad libros publications inc., vol. 9(1), pages 6-6, June.
    35. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    36. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
    37. Michael R. Haines, 1998. "Health, Height, Nutrition, and Mortality: Evidence on the "Antebellum Puzzle" from Union Army Recruits in the Middle of the Nineteenth Century," NBER Historical Working Papers 0107, National Bureau of Economic Research, Inc.
    38. Klasen, Stephan, 1994. ""Missing women" reconsidered," World Development, Elsevier, vol. 22(7), pages 1061-1071, July.
    39. Richard H. Steckel, 1995. "Stature and the Standard of Living," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1903-1940, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David E. Sahn, 2012. "Health Inequality across Populations of Individuals," African Development Review, African Development Bank, vol. 24(4), pages 316-326, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Easterly, William, 2007. "Inequality does cause underdevelopment: Insights from a new instrument," Journal of Development Economics, Elsevier, vol. 84(2), pages 755-776, November.
    2. Adalgiso Amendola & Roberto Dell�Anno, 2014. "Income inequality and economic growth: an empirical investigation in Mediterranean countries," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 68(2), pages 35-58, April-Jun.
    3. Baltzer, Markus & Baten, Jörg, 2008. "Height, trade, and inequality in the Latin American periphery, 1950-2000," Economics & Human Biology, Elsevier, vol. 6(2), pages 191-203, July.
    4. Marrero, Gustavo A. & Rodríguez, Juan G., 2013. "Inequality of opportunity and growth," Journal of Development Economics, Elsevier, vol. 104(C), pages 107-122.
    5. Roberto Dell'Anno & Adalgiso Amendola, 2015. "Social Exclusion and Economic Growth: An Empirical Investigation in European Economies," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(2), pages 274-301, June.
    6. Christophe Ehrhart, 2009. "The effects of inequality on growth: a survey of the theoretical and empirical literature," Working Papers 107, ECINEQ, Society for the Study of Economic Inequality.
    7. Shinhye Chang & Rangan Gupta & Stephen M. Miller, 2018. "Causality Between Per Capita Real GDP and Income Inequality in the U.S.: Evidence from a Wavelet Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(1), pages 269-289, January.
    8. Martin Ravallion, 2012. "Why Don't We See Poverty Convergence?," American Economic Review, American Economic Association, vol. 102(1), pages 504-523, February.
    9. Nobuhiro Mizuno & Katsuyuki Naito & Ryosuke Okazawa, 2017. "Inequality, extractive institutions, and growth in nondemocratic regimes," Public Choice, Springer, vol. 170(1), pages 115-142, January.
    10. Gravier-Rymaszewska, Joanna & Tyrowicz, Joanna & Kochanowicz, Jacek, 2010. "Intra-provincial inequalities and economic growth in China," Economic Systems, Elsevier, vol. 34(3), pages 237-258, September.
    11. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
    12. Marta Simões & João Andrade & Adelaide Duarte, 2013. "A regional perspective on inequality and growth in Portugal using panel cointegration analysis," International Economics and Economic Policy, Springer, vol. 10(3), pages 427-451, September.
    13. Ravallion, Martin, 2003. "Targeted transfers in poor countries : revisiting the tradeoffs and policy options," Policy Research Working Paper Series 3048, The World Bank.
    14. Asplund, Rita, 2004. "A Macroeconomic Perspective on Education and Inequality," Discussion Papers 906, The Research Institute of the Finnish Economy.
    15. Iyke, Bernard Njindan & Ho, Sin-Yu, 2017. "Income Inequality and Growth: New Insights from Italy," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 70(4), pages 419-442.
    16. Woo, Jaejoon, 2011. "Growth, income distribution, and fiscal policy volatility," Journal of Development Economics, Elsevier, vol. 96(2), pages 289-313, November.
    17. Arne Bigsten & Jörgen Levin, 2001. "Growth, Income Distribution, and Poverty," WIDER Working Paper Series DP2001-129, World Institute for Development Economic Research (UNU-WIDER).
    18. Klaus Schmidt-Hebbel & José-Carlos Tello, 2014. "The Political Economy of Growth, Inequality, the Size and Composition of Government Spending," Working Papers 19, Peruvian Economic Association.
    19. Martin Ravallion, 2013. "The Idea of Antipoverty Policy," NBER Working Papers 19210, National Bureau of Economic Research, Inc.
    20. Ghislain N. Gueye & Hyeongwoo Kim & Gilad Sorek, 2017. "Pitfalls In Testing For Cointegration Between Inequality And The Real Income," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 941-950, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_683. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.