The effects of Globalisation on the Level of Inequality in the Emerging Economies in Comparison with the OECD countries and non-OECD countries

In this thesis the effects of globalisation on the income distribution is studied for 9 emerging economies in comparison with 9 non-OECD countries and 5 OECD countries for the period 1980-2009. The results of the cross-country analysis showed that the factors determining globalisation (e.g. trade/GDP and FDI) have overall non-significant effect on the level of inequality. Furthermore, the control variables; female participation rate has a significant inequality decreasing effect in the emerging economies, and non-significant effect in the OECD countries and non-OECD countries. Education has a significant inequality decreasing effect in the emerging economies contrary to the other group of countries. The unemployment rate and the GDP per capita have both inequality increasing effect in the emerging economies, and non-significant effect in the OECD countries, and non-OECD countries. The results of the GDP per capita are consistent with the Kuznets theory