Relationship between globalization and poverty analysis

More services and features. It is source of much debate and conflict like any source of great power. Previous article in issue. The Name and Definition of Indicators. The indices were also used in a regression analysis framework to study the causal relationships between income inequality, poverty and globalization.

All indices including the newly suggested index are compared in respect to their level and development. Because of its multidimensional nature, it refers to the notion of relative poverty as well as issues related to distribution and social cohesion.

Globalization and Poverty

The proposed globalization index is decomposed into four sub-components suggested by the Kearney index. Lindert and Williamson state that globalization has very different implications for inequality in a country.

Globalization and Poverty "The evidence strongly suggests that export growth and incoming foreign investment have reduced poverty everywhere from Mexico to India to Poland.

International Journal of Innovation and Economic Development. Section 6 includes not only index values, but also the rankings of countries, the regional differences of globalization, and the development of globalization over time. Many other approaches to the concept exist such as the three categories of poverty developed by Professor Kalonji Ntalaja, absolute poverty Verger et al.

Two existing indices of globalization, the Kearney and principal component analysis, are used as benchmarks to compare the results. In general the focus on economic growth has changed from identification of factors generating growth and convergence to how growth is distributed in an economy.

The results show evidence of a weak and negative relationship between globalization and income inequality and poverty. It was collected from various secondary data sources such as national sources, international organizations and financial institutions.

Despite the increasing interests in the influence of globalization on economic growth and inequality, there are not many empirical studies examining the links between them. First, impediments to exports from developing countries worsen poverty in those countries.

In Indonesia, poverty rates increased by at least 50 percent after the currency crisis in that country, and the poor in Mexico have yet to recover from the pummeling of the peso in The theoretical literature on each component is vast but the empirical evidence on the nature and causal relationship between the different interrelated factors of interest remains poor.

The Relationship between Income Inequality, Poverty and Globalisation

This study is useful in the construction of a new multidimensional index of globalization with different and estimated weights attached to the determinant factors. For example, that was the case of neo-Keynesian dominating the economic policies around the world in the 50s.

However, because of the global population growth, the absolute number of poor has remained stable around 1. Dreher ; see also Dreher et al. It is expected that the indices serve as useful tools in comparing the globalization process among countries and the evaluation of the globalization effect on economic development and income inequality.

In such a case the appropriate policy consists in easing the persons more vulnerable, facilitate the adjustment rather than dropping the reform process.

The mean values of GDP and GDP per capita are much higher than the median values with large standard deviations which show evidence of skewed distribution of GDP levels. Economic integration, personal contacts, technology, and political engagement are selected to represent globalization which affects the economic performance of countries and the living conditions of their citizens.

Their findings are almost opposed to each other Rama, For instance, some argue that globalization provides benefits by enhancing economic development and the reducing inequality of people with high economic opportunity, while others are against globalization due to its restricted beneficiaries.The remainder of the paper is structured as follows.

Section 2 motivates the discussion on the relationship between globalization and poverty, and revisits some stylized theoretical and empirical treatments on globalization and its effects.

Section 3 presents the data and methodology. Section 4 presents the results, and section 5 concludes. 2. In this research, the relationship between globalisation and poverty and income inequality is determined.

A whole new globalisation index has been constructed based on data covering a. The indices were also used in a regression analysis to study the causal relationships between income inequality, poverty and globalisation. Inequality is negatively correlated to globalisation. — The paper studies the relation between globalization, inequality, and marginalization, within and across countries.

It reviews the existing evidence on globalization and global inequality and argues, using a simple theoretical model, that the two are inter-connected.

Globalization and Economic Growth: Empirical Evidence on the Role of Complementarities

It discusses alterna-tive policies to counter extreme poverty and inequality. I perform a ceteris paribus analysis to estimate the marginal effects of globalization on extreme poverty in a dynamic panel setting, controlling. Making a direct causal impact between globalization and poverty reduction is difficult.

According to economic and political writer Doug Bandow, Some critics of globalization have contended that the process has helped the rich and hurt the poor.

Relationship between globalization and poverty analysis
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