Neo-liberal Globalization and Income Inequality: Panel Data Evidence from OECD and Western Balkan Countries

Article


Roy-Mukherjee, S. and Udeogu, E. 2021. Neo-liberal Globalization and Income Inequality: Panel Data Evidence from OECD and Western Balkan Countries. Journal of Balkan and Near Eastern Studies. 23 (1), pp. 15-39. https://doi.org/10.1080/19448953.2020.1852004
AuthorsRoy-Mukherjee, S. and Udeogu, E.
Abstract

Over the last few decades, neo-liberal globalization—marked especially by the liberalization of finance, extended processes of commodification/privatization, free trade and free flow of capital—has coincided with rising income inequality and an ostensible decline in global poverty levels, the latter being largely attributed to China’s and India’s rapid economic development since the 1980s. Using a three-year-averaged non-overlapping data from 1991 to 2017 covering 39 OECD and western Balkan countries and applying the efficient Feasible Generalized Least Square (FGLS) estimation method, this article examines the effect of institutional ‘quality’, export complexity, and labour union density on income inequality. We have indications that neo-liberal globalization, measured using the KOF globalization index and sub-indicators, is positively correlated with income inequality. We have also indications that institutional ‘quality’, that is, mechanisms of ‘good governance’, tend to reduce income inequality. Importantly, the level of economic or export complexity and the degree of labour unionization were also found to reduce income inequality, while improving institutional ‘quality’ and mitigating downward pressures on wages.

JournalJournal of Balkan and Near Eastern Studies
Journal citation23 (1), pp. 15-39
ISSN1944-8953
Year2021
PublisherTaylor & Francis (Routledge)
Accepted author manuscript
License
File Access Level
Anyone
Digital Object Identifier (DOI)https://doi.org/10.1080/19448953.2020.1852004
Publication dates
Online02 Dec 2020
Publication process dates
Accepted13 Nov 2020
Deposited16 Feb 2021
Copyright holder© 2021 Taylor & Francis
Additional information

This is an Accepted Manuscript of an article published by Taylor & Francis in Journal of Balkan and Near Eastern Studies on 02/12/2020, available online: http://www.tandfonline.com/10.1080/19448953.2020.1852004

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