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Distributional Effects of Globalization in Developing Countries

by Pinelopi Koujianou Goldberg and Nina Pavcnik. Reading for 27 March.

We discuss recent empirical research on how globalization has affected income inequality in developing countries. We begin with a discussion of conceptual issues regarding the measurement of globalization and inequality. Next, we present empirical evidence on the evolution of globalization and inequality in several developing countries during the 1980s and 1990s. We then examine the channels through which globalization may have affected inequality discussing theory and evidence in parallel. We conclude with directions for future research.

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