Globalization, inequality and economic policy

Broll, Udo; Kemnitz, Alexander; Mukherjee, Vivekananda

doi:10.18559/ebr.2019.1.1

Abstract

In our paper a very simple model is used to analyze the relationship between trade globalization, inequality and economic policy. Although the local government exclusively maximizes the welfare of the marginalized (unemployed) people, the inequality of relative consumption between employed and unemployed will increase with intensified trade liberalization. In contrast to this result the relative income inequality may fall in certain situations.

References

Alvaredo, F., Chancel, L., Piketty, T., Saez, E., & Zucman, G. (2018). World inequality report 2018. Retrieved from: wir2018.wid.world
Search in Google Scholar Back to article
Atkinson, A. B. (2015). Inequality. What can be done?. Cambridge, MA: Harvard University Press.10.4159/9780674287013
Search in Google Scholar Back to article
Baldwin, R., & Wyplosz, C. (2015). The economics of European integration (5th ed.). London: McGraw Hill.
Search in Google Scholar Back to article
Basu, K. (2006). Globalization, poverty and inequality: What is the relationship? What can be done?. World Development, 34, 1361-1373.10.1016/j.worlddev.2005.10.009
Open DOI Search in Google Scholar Back to article
Basu, K. (2011). Groundwork for a new economics. Princeton, NJ: Princeton University Press.
Search in Google Scholar Back to article
Bourguignon, F., & Chakravarty, S. R. (2003). The measurement of multidimensional poverty. Journal of Economic Inequality, 1, 25-49.10.1023/A:1023913831342
Search in Google Scholar Back to article
Elbers, C., Lanjouw, P., Mistiaen, J. A., & Ölzer, B. (2008). Reinterpreting between group inequality. Journal of Economic Inequality, 6, 231-246.10.1007/s10888-007-9064-x
Open DOI Search in Google Scholar Back to article
Jomo, K. S. & Baudot J. (Eds.). (2007). Flat world, big gaps: Economic liberalization, globalization, poverty and inequality. London: Zed Books.
Search in Google Scholar Back to article
OECD. (2015). In it together: Why less inequality benefits all. Paris: OECD Publishing.
Search in Google Scholar Back to article
Piketty, T. (2014). Capital in the twenty-first century. Cambridge, MA: Belknap Press of Harvard University Press.10.4159/9780674369542
Search in Google Scholar Back to article
Rodrik, D. (2011). The globalization paradox: Democracy and the future of the world economy. New York: Norton.
Search in Google Scholar Back to article

Globalization, inequality and economic policy

Abstract

Paradigm

My account