Can We Discern the Effect of Globalization on Income Distribution? Evidence from Household Budget Surveys

Milanovic, Branko

World Bank, Washington, DC

关键词: ADVANCED COUNTRIES;    AGRICULTURE;    AVERAGE INCOMES;    AVERAGE SHARE;    BENCHMARK;   

DOI  :  10.1596/1813-9450-2876
RP-ID  :  WPS2876

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The effects of globalization on incomedistribution in rich and poor countries are a matter ofcontroversy. While international trade theory in its mostabstract formulation implies that increased trade andforeign investment should make income distribution moreequal in poor countries and less equal in rich countries,finding these effects has proved elusive. The authorpresents another attempt to discern the effects ofglobalization by using data from household budget surveysand looking at the impact of openness and foreign directinvestment on relative income shares of low and highdeciles. The author finds some evidence that at very lowaverage income levels, it is the rich who benefit fromopenness. As income levels rise to those of countries suchas Chile, Colombia, or Czech Republic, for example, thesituation changes, and it is the relative income of the poorand the middle class that rises compared with the rich. Itseems that openness makes income distribution worse beforemaking it better--or differently in that the effect ofopenness on a country's income distribution depends onthe country's initial income level.