The impact of economic globalization on income inequality in middle-income countries in Asia: An empirical analysis from 2018 to 2021

Abstract

This study investigates the relationship between economic globalization and income inequality in Asia during the period from 2018 to 2021. The research aims to contribute to the academic and policy debates on the impact of globalization on income inequality and to identify effective policy measures that can help mitigate the negative effects of globalization on income distribution in Asian countries. In this study, the relationship between income inequality and economic globalization is analyzed using the Random Effects Model (REM) and Generalized Least Squares (GLS) estimation to address the issues of auto-correlated errors and heteroscedasticity in the selected model. The study utilizes secondary data from the World Bank about 28 middle-income countries in Asia, spanning the period from 2018 to 2021, the International Monetary Fund, and the United Nations Development Program. The results of the study indicate that economic globalization is positively correlated with income inequality. The findings of this study provide insights and recommendations that can help policymakers, academics, and other stakeholders better understand the complex relationship between economic globalization and income inequality and identify strategies for promoting more equitable economic growth and development in Asia.