Globalization on global wealth inequality

This paper aims to investigate the complex relationship between globalization and wealth inequality between nations, using a comprehensive dataset spanning from 2000 to 2022, sourced from the World Bank, the International Monetary Fund, World Trade Organization. By quantified wealth inequality through Theil Index, while globalization is measured using an aggregate index constructed via Principal Component Analysis (PCA), capturing dimensions such as trade openness, FDI inflows, number of trade agreements, and technological integration. Employing robust econometrics models-Pooled Ordinary Least Squares (OLS), Fixed Effects (FE), Random Effects (RE), and System Generalized Method of Moments (GMM)-this study provides an in-depth analysis of the impact of globalization on wealth distribution across countries. The results provide not an insight on a global scale but also divided into two types of markets, contributing to the academic discourse of global wealth inequality, while offering insights that could inform policies aimed at fostering a more equitable and just global economic system.