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Globalization and Economic Inequality in the Short and Long Run: The Case of South Korea 1975-1995

Author

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  • Sumie

    (Graduate School of Economics, Kobe University)

  • Mototsugu Fukushige

    (Graduate School of Economics, Osaka university)

Abstract

We have analyzed the determinants of the Gini coefficient for income and expenditure. In both cases, we do not find support for the Kuznets inverted-U hypothesis. From economic globalization viewpoint, the opening of goods markets reduces income inequality both in the short run (the Gini coefficient for income) and in the long run (the Gini coefficient for expenditure). On the other hand, the opening of capital markets increases income inequality both in the short and long run, but the latter is not statistically significant. These results suggest that the effect of economic globalization has two routes and two different speeds to affect income inequality.

Suggested Citation

  • Sumie & Mototsugu Fukushige, 2007. "Globalization and Economic Inequality in the Short and Long Run: The Case of South Korea 1975-1995," Discussion Papers in Economics and Business 07-43, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:0743
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    References listed on IDEAS

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    Cited by:

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    2. Karacaovali, Baybars & Tabakis, Chrysostomos, 2017. "Wage inequality dynamics and trade exposure in South Korea," Journal of Asian Economics, Elsevier, vol. 48(C), pages 48-65.
    3. Hamza CESTEPE & Havanur Ergun Tatar & Serdar Erdogan, 2023. "The Impact of Globalization with its Different Aspects on Economic Growth: The Case of Turkey," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(73-2), pages 717-743, December.
    4. Deepak Kumar Behera & Viswanathan Pozhamkandath Karthiayani, 2022. "Do globalization progress and sectoral growth shifts affect income inequality? An exploratory analysis from India," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(2), pages 352-375, April.
    5. Lee, Siwook, 2017. "International trade and within-sector wage inequality: The case of South Korea," Journal of Asian Economics, Elsevier, vol. 48(C), pages 38-47.
    6. Judith Liu & Mei‐Ying Lai & Zong‐Shin Liu, 2022. "Trade liberalization, domestic reforms, and income inequality: Evidence from Taiwan," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1286-1309, August.
    7. Ruijia Wu & Rafael Alvarado & Priscila Méndez & Brayan Tillaguango, 2024. "Impact of Informational and Cultural Globalization, R&D, and Urbanization on Inequality," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1666-1702, March.
    8. Parisa SAMIMI & Guan Choo LIM & Abdul Aziz BUANG, 2011. "Globalization Measurement: Notes on Common Globalization Indexes," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(7), pages 1-20, December.

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    More about this item

    Keywords

    Globalization; Economic inequality; Gini coefficient; South Korea;
    All these keywords.

    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • D30 - Microeconomics - - Distribution - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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