Globalisation and Income Gap between Rich and Poor Nations
Khaled Elmawazini and
Economic Issues Journal Articles, 2013, vol. 18, issue 2, 19-40
Set against the background of initial relatively low cross-country income and considerable poverty and deprivation in Sub-Saharan Africa (SSA), the question of whether globalisation is associated with a 'catching up' in terms of real income growth, in absolute and relative terms, is both relevant and important. This paper contributes to the empirical literature by investigating globalisation as a channel of income gap reduction between SSA and developed countries. We employ Globalisation Indexes from the Konjunkturforschungsstelle (KOF) and the Centre for the Study of Globalisation and Regionalisation (CSGR) in an Arellano-Bond dynamic panel GMM specification to test the hypothesis that globalisation has reduced the income gap between SSA and developed countries. We find no evidence that globalisation is associated with a reduction between SSA and developed countries over the period 1980-2009. This result is consistent with previous studies on country's absorptive capacity. An implication of this result for policy theorists is that structural features of SSA output require a more heterodox approach to all dimensions of human development.
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eis:articl:213elmawazini
Access Statistics for this article
More articles in Economic Issues Journal Articles from Economic Issues Contact information at EDIRC.
Series data maintained by Dan Wheatley ().