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Globalization and income inequality: evidence for Latin America

Werner Kristjanpoller () and Rocío Contreras ()
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Werner Kristjanpoller: Universidad Santa María
Rocío Contreras: Universidad Técnica Federico Santa María

Lecturas de Economía, 2017, issue 87, 9-33

Abstract: This study explores the relationship between globalization and income inequality in twelve Latin American economies during the period 2000-2013 using panel data analyses. Based on the importance that the literature gives to a country’s structure, the sample is grouped according to corruption levels, educational attainment levels, gross domestic product (GDP) and trade openness. The results show that higher trade openness generates a decrease in income inequality, while higher foreign direct investment increases it. Countries characterized by higher levels of corruption, trade openness and GDP take better advantage from globalization to decrease income inequality

Keywords: income inequality; panel data; financial globalization; foreign direct investment. (search for similar items in EconPapers)
JEL-codes: D30 F10 F15 (search for similar items in EconPapers)
Date: 2017
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DOI: 10.17533/udea.le.n87a01

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Handle: RePEc:lde:journl:y:2017:i:87:p:9-33