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The Impact of Economic Globalization on Income Distribution: Empirical Evidence in China

Author

Listed:
  • Baotai Wang

    (University of Northern BC)

  • Ajit Dayanandan

    (University of Northern BC)

  • Xiaofei Tian

    (Hebei University)

Abstract

This study investigates the impact of economic globalization, as characterized by increasing international trade and foreign direct investment (FDI) flows, on income distribution in China. The Gini coefficients - the conventional measure of income inequality - are used in this study and the empirical investigation is conducted within the unit root and cointegration framework. The empirical results show that economic globalization tends to improve income inequality in China. Therefore, the worsening of income inequality in China must be caused by other factors.

Suggested Citation

  • Baotai Wang & Ajit Dayanandan & Xiaofei Tian, 2008. "The Impact of Economic Globalization on Income Distribution: Empirical Evidence in China," Economics Bulletin, AccessEcon, vol. 4(35), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-08d30006
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    References listed on IDEAS

    as
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    2. Spilimbergo, Antonio & Londono, Juan Luis & Szekely, Miguel, 1999. "Income distribution, factor endowments, and trade openness," Journal of Development Economics, Elsevier, vol. 59(1), pages 77-101, June.
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    Cited by:

    1. Ngwen Ngangu¨¦, 2020. "Financial Sector Development and Open Economy for Income Inequality Reduction: A Panel Fixed Model Analysis," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(4), pages 1-33, April.
    2. Raymond Kofi Adjei & Veronika Kajurová, 2021. "What Affects Income in Sub-Saharan Africa?," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 7(2), pages 223-237.
    3. Kaixing Huang & Nicholas Sim & Hong Zhao, 2020. "Does Fdi Actually Affect Income Inequality? Insights From 25 Years Of Research," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 630-659, July.
    4. Huang, Kaixing & Yan, Wenshou & Sim, Nicholas & Guo, Yuqing & Xie, Fang, 2022. "Can trade explain the rising trends in income inequality? Insights from 40 years of empirical studies," Economic Modelling, Elsevier, vol. 107(C).
    5. Bukhari, Mahnoor & Munir, Kashif, 2016. "Impact of Globalization on Income Inequality in Selected Asian Countries," MPRA Paper 74248, University Library of Munich, Germany.

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    More about this item

    Keywords

    Globalization;

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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