IDEAS home Printed from https://ideas.repec.org/a/taf/titdxx/v29y2023i1p61-82.html
   My bibliography  Save this article

Does digitalization contribute to lesser income inequality? Evidence from G20 countries

Author

Listed:
  • Zi Hui Yin
  • Chang Hwan Choi

Abstract

This study examines both the direct and moderating effects of digitalization on income inequality by using the panel data of Group of Twenty countries for 2002–2018. We find that digitalization alleviated income inequality and the interaction of digitalization with trade openness, and foreign direct investment helped narrow the income gap in the full sample, but the impact is heterogeneous by income level. The impact of digitalization on narrowing income gap has a greater effect on middle-income countries than on high-income countries. The interaction between digitalization and trade openness tends to widen the income inequality in high-income countries but has the opposite effect in middle-income countries. The interaction of digitalization with foreign direct investment has helped narrow income inequality in both high-income and middle-income countries. It implies that digitalization contributes to narrowing income inequality; there is a difference in the intensity of the digitalization effect between high-income and middle-income countries.

Suggested Citation

  • Zi Hui Yin & Chang Hwan Choi, 2023. "Does digitalization contribute to lesser income inequality? Evidence from G20 countries," Information Technology for Development, Taylor & Francis Journals, vol. 29(1), pages 61-82, January.
    • Handle: RePEc:taf:titdxx:v:29:y:2023:i:1:p:61-82
    DOI: 10.1080/02681102.2022.2123443
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/02681102.2022.2123443
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02681102.2022.2123443?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Anran Xiao & Zeshui Xu & Marinko Skare & Yong Qin & Xinxin Wang, 2024. "Bridging the digital divide: the impact of technological innovation on income inequality and human interactions," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-18, December.
    2. Han Bu & Zhou Xun & Sha Cai, 2024. "Big data and inter-firm wage disparities: theory and evidence from China," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-36, August.

    More about this item

    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:taf:titdxx:v:29:y:2023:i:1:p:61-82. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/titd20 .

    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.