IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v13y2021i2p15.html
   My bibliography  Save this article

Effect of Globalization on Income Inequality in Ghana

Author

Listed:
  • Christiana Manu

Abstract

Available empirical evidence suggests that globalisation in recent years have had a significant positive impact on various sectors of most economies; however, significant evidence also exists suggesting that this economic process has also accentuated poverty and worsened income distribution in parts of some economies. This study examines the effects of foreign direct investment, trade openness and foreign remittance on income inequality in Ghana. The paper applied the vector error correction model in examining the effect of FDI inflow, foreign remittance and trade openness and income inequality in Ghana. The result indicates Foreign Remittance, FDI, Trade Openness and Gini index, are integrated of order one. Additionally, Johansen’s test for cointegration suggest a long-run relationship between the Gini coefficient (income distribution) and examined independent variables. The study also found out that foreign remittance has a significant negative relationship with Ghana’s income inequality and FDI inflows have no significant impact on Ghana’s income inequality.

Suggested Citation

  • Christiana Manu, 2021. "Effect of Globalization on Income Inequality in Ghana," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(2), pages 1-15, February.
    • Handle: RePEc:ibn:ijefaa:v:13:y:2021:i:2:p:15
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijef/article/download/0/0/44547/47009
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijef/article/view/0/44547
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lisandra Flach & Eckhard Janeba, 2017. "Income inequality and export prices across countries," Canadian Journal of Economics, Canadian Economics Association, vol. 50(1), pages 162-200, February.
    2. James Markusen, 2005. "Modeling the Offshoring of White-Collar Services: From Comparative Advantage to the New Theories of Trade and FDI," NBER Working Papers 11827, National Bureau of Economic Research, Inc.
    3. Lisandra Flach & Eckhard Janeba, 2017. "Income inequality and export prices across countries," Canadian Journal of Economics, Canadian Economics Association, vol. 50(1), pages 162-200, February.
    4. Michel Fouquin & Jules Hugot, 2016. "Two Centuries of Bilateral Trade and Gravity data: 1827-2014," Vniversitas Económica 15129, Universidad Javeriana - Bogotá.
    5. Gastwirth, Joseph L, 1972. "The Estimation of the Lorenz Curve and Gini Index," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 306-316, August.
    6. Malvika Mahesh, 2016. "The effects of trade openness on income inequality - evidence from BRIC countries," Economics Bulletin, AccessEcon, vol. 36(3), pages 1751-1761.
    7. Scott Hipsher, 2017. "Poverty Reduction, the Private Sector, and Tourism in Mainland Southeast Asia," Springer Books, Springer, number 978-981-10-5948-3, January.
    8. Ryu, Hang Keun, 2013. "A bottom poor sensitive Gini coefficient and maximum entropy estimation of income distributions," Economics Letters, Elsevier, vol. 118(2), pages 370-374.
    9. James R. Markusen & Bridget Strand, 2009. "Adapting the Knowledge‐capital Model of the Multinational Enterprise to Trade and Investment in Business Services," The World Economy, Wiley Blackwell, vol. 32(1), pages 6-29, January.
    10. Julien Gourdon, 2011. "Openness and Inequality in Developing Countries: a New Look at the Evidence," Working Papers halshs-00557117, HAL.
    Full references (including those not matched with items on IDEAS)

    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. Fontagné, Lionel & Secchi, Angelo & Tomasi, Chiara, 2018. "Exporters’ product vectors across markets," European Economic Review, Elsevier, vol. 110(C), pages 150-180.
    2. Erick Sager & Olga A. Timoshenko, 2019. "The double EMG distribution and trade elasticities," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(4), pages 1523-1557, November.
    3. Bo Gao & Bin Qiu, 2023. "Income distribution and unequal gains from trade," The World Economy, Wiley Blackwell, vol. 46(1), pages 236-255, January.
    4. Andrea Ciani, 2021. "Income inequality and the quality of imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(2), pages 375-416, May.
    5. Miao, Zhuang & Li, Yifan & Duan, Sisong, 2020. "Income inequality of destination countries and trade patterns: Evidence from Chinese firm-level data," MPRA Paper 99441, University Library of Munich, Germany.
    6. Latzer, Hélène & Mayneris, Florian, 2021. "Average income, income inequality and export unit values," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 625-646.
    7. Bastos, Paulo & Silva, Joana, 2010. "The quality of a firm's exports: Where you export to matters," Journal of International Economics, Elsevier, vol. 82(2), pages 99-111, November.
    8. Olga A. Timoshenko & Erick Sager, 2017. "Uncertainty and Trade Elasticities," Working Papers 2017-8, The George Washington University, Institute for International Economic Policy.
    9. Jules Hugot & Camilo Umana Dajud, 2016. "Trade costs and the Suez and Panama Canals," Working Papers 2016-29, CEPII research center.
    10. Saygılı, Hülya, 2017. "Production fragmentation and factor price convergence," International Review of Economics & Finance, Elsevier, vol. 51(C), pages 535-544.
    11. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    12. Witada Anukoonwattaka, 2007. "Outsourcing and International Production of a Multinational: A Theoretical Model and Empirical Evidence from Toyota, Thailand," DEGIT Conference Papers c012_045, DEGIT, Dynamics, Economic Growth, and International Trade.
    13. Cong Minh Huynh & Nam Hoai Tran, 2023. "Financial development, income inequality, and institutional quality: A multi-dimensional analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2242128-224, June.
    14. Igor Fedotenkov, 2020. "A Review of More than One Hundred Pareto-Tail Index Estimators," Statistica, Department of Statistics, University of Bologna, vol. 80(3), pages 245-299.
    15. Modalsli, Jørgen, 2011. "Inequality and growth in the very long run: inferring inequality from data on social groups," Memorandum 11/2011, Oslo University, Department of Economics.
    16. Richard Baldwin, 2013. "Trade and Industrialization after Globalization's Second Unbundling: How Building and Joining a Supply Chain Are Different and Why It Matters," NBER Chapters, in: Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century, pages 165-212, National Bureau of Economic Research, Inc.
    17. Stephen Davies & Peter L. Ormosi, 2014. "The economic impact of cartels and anti-cartel enforcement," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2013-07v2, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    18. Rosario Crinò, 2010. "Service Offshoring and White-Collar Employment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(2), pages 595-632.
    19. Zhu, Yongjun & Yan, Erjia, 2017. "Examining academic ranking and inequality in library and information science through faculty hiring networks," Journal of Informetrics, Elsevier, vol. 11(2), pages 641-654.
    20. Andrzej Cieślik, 2020. "What attracts multinational enterprises from the new EU member states to Poland?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 253-269, June.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    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:ibn:ijefaa:v:13:y:2021:i:2:p:15. 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.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.