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Volume 10 (1); June 25, 2021crossref-_scienceline


Research paper

An analysis of the globalisation and income inequality relationship in the developing economies: a static approach.

SenGupta S.

Asian J. Soc. Econ. Sci., 10(1): 01-10, 2021; pii:S2252043021000001-10

ABSTRACT

This paper investigates the impacts of globalisation on income inequality in less developed economies. Firstly, the impact is examined using the aggregate globalisation index. Subsequently, the impacts of economic, trade, financial, informational and cultural globalisation has been analysed individually, in order to examine the magnitude of the impacts of each category. A panel dataset of 110 countries over the period of 1980-2016, has been used for the study. For estimation, static approach of fixed effects model with both country and time fixed effects, has been employed.  The results suggest that globalisation led to the increase in income inequality in the less developed nations. On examination of individual globalisation indices, it was found that financial and cultural globalisation had the least and most impacts on income inequality, respectively. Meanwhile, no relationship between trade/informational globalisation and income inequality could be established.

Keywords: Brand legitimacy, Cultural inspiration, Perceiving value, Cultural inspiration, Re-patronage intentions

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