March 2010
Indian Journal of Economics & Business;Mar2010, Vol. 9 Issue 1, p147
Academic Journal
The paper examines several globalization factors that determine income distribution and poverty in developing countries. Cross-country regression results indicate factors that make income distribution more equal and poverty lower are higher income per capita, rising number of internet users, lower telephone costs, and being among low-income countries. Those that render income distribution less equal are expanding volumes of airfreight transportation and increasing expenditures by international tourists. Poverty is negatively affected by the former but not the latter. As is consistent with other studies, foreign direct investment and trade have no effect on income distribution or poverty. However, if globalization contributes to economic growth then it will eventually lead to better income distribution and lesser poverty.


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