Abstract
The third wave of global economic integration is advancing at an unprecedented speed. At the same time, there is intense debate among people about the impact of globalization on the economy, society, environment, and other aspects. One of the core issues of debate is the impact of globalization on income disparities between countries. Many people believe that the rules of globalization are beneficial to rich countries by sacrificing the interests of the third world, exacerbating inequality between countries and exacerbating poverty. This article uses literature review and case analysis methods, and panel data to study the impact of globalization on income inequality between countries through a regression based inequality decomposition framework. This paper will start with theoretical analysis and then test these theories with empirical data. Our goal is to provide a comprehensive perspective to understand the interaction between these two important economic variables and to look for possible equilibrium strategies.
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