Do economic liberalization and globalization increase income inequality?

Andreas Bergh and Therese Nilsson ()

No 2008:12, Working Papers from Lund University, Department of Economics

Abstract: Using the newly developed KOF-index of globalization, as well as the economic freedom index from the Fraser institute, we examine if globalization and economic liberalizations are linked to increases in income inequality within countries. Studying changes between 1980 and 2000, we find a positive link between inequality and liberalization only for certain types of reforms: Trade liberalizations, deregulation of product and labor markets and economic globalization. The Scandinavian welfare states have increased economic freedom and globalization more than other countries, but they have also experienced high increases in income inequality.

Keywords: Economic freedom; Globalization; Income Inequality; Gini Coefficient; Welfare states (search for similar items in EconPapers)
JEL-codes: D63 O11 P51 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2008-09-12
New Economics Papers: this item is included in nep-ecm, nep-ore and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lunewp:2008_012

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