The Analysis of The Impact of Globalization on Income Distribution in Selected Countries

Today globalization has emerged as a well-known phenomenon, so it is necessary to recognize different dimensions of globalization. Since there is no consensus on the effects of globalization on income distribution, the main objective of this paper is to examine the impact of globalization on income distribution, using panel data, for selected developing countries covering the period 1985-2004. Results show that inequality and per capita income levels are related in a cubic functional form. This finding does not contradict the Kuznets hypothesis, but extends it. There are inverted U-shaped relationships between income distribution to foreign direct investment, openness ratio and integration of international trade.