Introduction justifiable? It occurs either between or
IntroductionGlobalization refers to the growth on a worldwide scale.That is, in every economic section growth takes place. MAJOReconomic constraints, every country faces, are highly growing rate of poverty,unequal income distribution, trade liberalization and demographic transitionwith increasing rate.
poverty means the lack of necessities. Trade liberalizationis the removal of all trade barriers both tariff and non-tariff. Income inequality means some people get large portionwhile others get a very small portion of total income.Many economists believe in globalization as it has acommanding role during last thirty-five years in economic phenomenon by enlargingtrade volume, investment and financial flow dramatically. But many economists recalcitratedthe globalization as it became the cause of increasing inequality during thisperiod. A question arises here that is there any relationship betweenglobalization and inequality? If yes then of what type? Is that relationshipjustifiable? It occurs either between or within the nations?ObjectivesØ To identify the relationship betweenglobalization and inequalityØ To examine the income distribution amongcountriesØ To study the impact of globalization on LDCs Literature ReviewBhagwati (1999) observed that developed countries opposedgreater integration because of rising inequality and connoted political effectsin their economies.Inequality has been increased between and within nations inan impressive manner joust because of globalization. It has put the poor ofLDCs in the position of secondary importance while deserted the poorest (Mazur2000).
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Meanwhile, moderate politician Clinton (2000) argued that to get the benefitsof globalization, education must be invested by the poor.Winter (2000) pointed out that open economies have morechances toreduce poverty than closed economies as trade liberalization is beneficialfor different classes of society like consumers and producers in the way toincrease the earning of workers but poor class cannot get benefits thatcreated by trade openness as they lack skills and capital.Low (2001) suggested the globalization to come down thepoverty. Hisviews bring up globalization as the process of increasing communicationbetween people of different nations as well as less valuation of politicalsocial and geographical constraints.Deolalikar (2002) observed that economic growth is directlyproportionalto poverty reduction and inversely proportional to income inequality.
Heintimated to Thailand to make an immense progress, the policy toincrease the education opportunities for poor students should adopted. Inthis way, they will be able to overcome the income gap, what is more,investment level should heighten in backward areas to overtake theincome inequality gap.Globalization has made worsen the inequality especially inthe countries of OECD (Dreher and Gaston 2008)Alvan (2009) who views that income inequality is affected bydifferentvariables like globalization, inflation, economic growth and humandevelopment.
Human development and income inequality have negativerelationship with each other. She intimated to give priority to humandevelopment on income distribution in development program.Hussain (2009) found the positive relationship betweenglobalization andtrade liberalization.
He suggested that if Pakistan wants to lessen theincome inequity, it ought to welcome the foreign investors.Meisami (2011) told that Islam lays great stress on povertyreduction andincome distribution equally. Islam stresses on the importance of humancapital components like education and health.