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Globalization, inequality and economic policy

Author

Listed:
  • Broll Udo

    (Department of Business and Economics, School of International Studies (ZIS), Technische Universität Dresden, 01062Dresden, Germany)

  • Kemnitz Alexander

    (Department of Business and Economics, School of International Studies (ZIS), Technische Universität Dresden, 01062Dresden, Germany.)

  • Mukherjee Vivekananda

    (Department of Economics, Jadavpur University, Kolkata, India.)

Abstract

In our paper a very simple model is used to analyze the relationship between trade globalization, inequality and economic policy. Although the local government exclusively maximizes the welfare of the marginalized (unemployed) people, the inequality of relative consumption between employed and unemployed will increase with intensified trade liberalization. In contrast to this result the relative income inequality may fall in certain situations.

Suggested Citation

  • Broll Udo & Kemnitz Alexander & Mukherjee Vivekananda, 2019. "Globalization, inequality and economic policy," Economics and Business Review, Sciendo, vol. 5(1), pages 3-11, March.
    • Handle: RePEc:vrs:ecobur:v:5:y:2019:i:1:p:3-11:n:1
    DOI: 10.18559/ebr.2019.1.1
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    References listed on IDEAS

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    1. Basu, Kaushik, 2006. "Globalization, poverty, and inequality: What is the relationship? What can be done?," World Development, Elsevier, vol. 34(8), pages 1361-1373, August.
    2. Chris Elbers & Peter Lanjouw & Johan Mistiaen & Berk Özler, 2008. "Reinterpreting between-group inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(3), pages 231-245, September.
    3. François Bourguignon & Satya R. Chakravarty, 2019. "The Measurement of Multidimensional Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 83-107, Springer.
    4. Atkinson, Anthony B., 2015. "Inequality: what can be done?," LSE Research Online Documents on Economics 101810, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. Pietrzykowski Maciej, 2019. "Convergence in GDP per capita across the EU regions— spatial effects," Economics and Business Review, Sciendo, vol. 5(2), pages 64-85, June.
    2. Małecka-Ziembińska Edyta & Siwiec Anna, 2020. "Searching for similarities in EU corporate income taxes for their harmonization," Economics and Business Review, Sciendo, vol. 6(4), pages 72-94, December.

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    More about this item

    Keywords

    globalization; inequality; marginalization; economic policy; public policy;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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