Publication: Can We Discern the Effect of Globalization on Income Distribution? Evidence from Household Surveys
Date
2005-01
ISSN
Published
2005-01
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Abstract
New data derived directly from household
surveys are used to examine the effects of globalization on
income distribution in poor and rich countries. The article
looks at the impact of openness and of direct foreign
investment on relative income shares across the entire
income distribution. It finds strong evidence that at low
average income levels, the income share of the poor is
smaller in countries that are more open to trade. As
national income levels rise, the incomes of the poor and the
middle class rise relative to the income of the rich. The
article explains why using the trade to gross domestic
product (GDP) ratio in purchasing power parity terms, as
favored by some analysts, is inappropriate in studies of the
effect of trade on income distribution.
Citation
“Milanovic, Branko. 2005. Can We Discern the Effect of Globalization on Income Distribution? Evidence from Household Surveys. World Bank Economic Review. © Published by Oxford University Press on behalf of the World Bank. http://openknowledge.worldbank.org/handle/10986/16484 License: CC BY-NC-ND 3.0 IGO.”
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World Bank Economic Review
1564-698X
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Cited 136 times in Scopus (View citations)