Distributional Effects of Globalization in Developing Countries

Abstract

We discuss recent empirical research on how globalization has affected income inequality in developing countries. We begin with a discussion of conceptual issues regarding the measurement of globalization and inequality. Next, we present empirical evidence on the evolution of globalization and inequality in several developing countries during the 1980s and 1990s. We then examine the channels through which globalization may have affected inequality discussing theory and evidence in parellel. We conclude with directions for future research.

Trade Liberalization, Inequality, and Poverty in Brazilian States

“…12 Though some interest groups representing the entrepreneurs might exert some influence on the trade policy making, in the case of Brazil it was limited to very specific sectors (see Abreu, 2004). Since Brazil committed to an economywide liberalization process and experienced the greatest tariff cuts in the most protected sectors, the question of the endogeneity of trade liberalization, that is sometimes raised when studying its impact on income distribution, should be less of an issue in the Brazilian case as already underlined by Goldberg and Pavcnik (2007). 13 Goldberg and Pavcnik (2007) emphasize that in recent years in developing countries, NTB coverage ratios and tariff rates (as well as their changes), whenever available, are positively correlated, indicating that they have been used as complements and not substitutes.…”

“…Since Brazil committed to an economywide liberalization process and experienced the greatest tariff cuts in the most protected sectors, the question of the endogeneity of trade liberalization, that is sometimes raised when studying its impact on income distribution, should be less of an issue in the Brazilian case as already underlined by Goldberg and Pavcnik (2007). 13 Goldberg and Pavcnik (2007) emphasize that in recent years in developing countries, NTB coverage ratios and tariff rates (as well as their changes), whenever available, are positively correlated, indicating that they have been used as complements and not substitutes. In the case of Brazil, Carvalho (1992) considers that NTB's application before 1990 was usually done in complement with high level tariffs causing a tariff redundancy and having no additional effects on imports.…”

Erratum to: The Consequences of Tariff Reduction for Economic Activity and Inequality

“…This has primarily taken the form of a steady reduction in tariffs, accompanied by declining nontariff barriers, particularly by developing economies. These developments have been associated with an increase in inequality, as Goldberg and Pavcnik (2007) have documented in detail. As these authors have also discussed, due in large part to data limitations, empirical studies have been restricted almost entirely to wage inequality, focusing in particular on the rising wage differential associated with the skill premium.…”

Desigualdad (Re)considerada Peru 1997-2015

“…Según esta perspectiva, procesos tales como la mayor apertura comercial e inversión extranjera, la adopción de instituciones que contribuyen a un marco normativo estable, y la mayor inversión en educación y salud contribuyeron al crecimiento con menor desigualdad (Edwards, 2010;López-Calva & Lustig, 2010;Acemoglu & Robinson, 2012). Otros estudiosos señalan que los procesos antes mencionados no parecen haber reducido la desigualdad en las tres últimas décadas (Atkinson, 2015;Cornia, 2004;Goldberg & Pavcnik, 2007;Piketty, 2014;Stiglitz, 2012). Algunos factores que impidieron este resultado son los siguientes: (i) la concentración de la propiedad de activos reales y financieros; (ii) la reducción del empleo productivo debido a su sustitución por tecnología o por el desplazamiento de procesos a otros países; (iii) en países desarrollados, los estados de bienestar se agotan debido al envejecimiento y se anuncian cambios paramétricos tanto en los beneficios como en la elegibilidad; (iv) en todas partes, el pago de premios al empleo de mayor o de alta habilidad genera cambios en la distribución factorial del ingreso; (v) sin embargo, en esta última, la participación de los sueldos y salarios en relación a las rentas de capital disminuyen, y finalmente (vi) existe evidencia de un impacto regresivo de los impuestos y de las transferencias.…”