Do Globalization, Technology Adoption and Economic Development Influence Income Inequality in Developing Asian Nations?

Abstract

Currently, income inequality has become an international issue that needs to be overcome and also requires the attention of researchers and policymakers. Hence, this study is an attempt to explore the impact of globalization, technology adoption, and economic development on income inequality. For this purpose, 20 years of large-scale panel data over the period from 2001 to 2020 for ten emerging Asian nations (Iran, Jordan, Iraq, Laos, Pakistan, Bangladesh, Sri Lanka, Thailand, Indonesia, and the Philippines) is mined from the World Bank database and KOF globalization index. In order to inspect the empirical relationship among the selected variables, the panel data fixed effects model (FEM) along with the robust standard error is employed. The results indicate that globalization, technology adoption, and economic development have a negative linkage with income inequality, which means these factors play a significant role in removing the income inequality in developing countries. This study provides insight for policymakers while developing policies regarding income inequality elimination in the country.