Globalization and Its Impact on Economic Inequality: A Cross-Country Analysis

Abstract

This study uses a cross-national analysis to look at the connection between economic inequality and globalization. The study attempts to determine how various aspects of globalization—such as trade liberalization, capital flows, and technical exchange—affect income distribution within nations by looking at data from a variety of economies. This study examines both developed and developing countries using econometric methodologies, such as two-stage least squares (2SLS) and comparative analysis, to show differences in the effects of globalization on income inequality. The results show that although globalization can spur economic expansion, it frequently makes income inequality worse, especially in industrialized countries. Institutional elements, such as social safety nets and labour market regulations, are also essential in moderating these effects. In the end, the research highlights the need for policies that lessen the negative effects of globalization on income inequality and offers significant insights for policymakers attempting to create fair economic policies in a world growing more interconnected by the day.