Abstract:
The relationship between globalization and income distribution is one of the important economic topics that has attracted the attention of economists, especially development economists, and various theories have been presented about it. The main objective of this article is to examine the causal relationship from globalization and its dimensions (separated into economic, social, and political globalization) to income inequality in Iran during the period 1386-1393. To this end, a time series analysis method including unit root tests and two causal methods, the Unrestricted Error Correction Model (UECM) based band convergence test (Pesaran et al., 2009) and the Toda and Yamamoto (1995) Granger causality test, as well as the Gini coefficient and the new and comprehensive KOF globalization index were used. This index includes three very important aspects: economic (including real trade flows such as trade, foreign direct investment, and portfolio investment, as well as trade barriers such as quotas and tariffs affecting real flows), social, and political. The results of this research indicate a causal relationship from the contribution of globalization and its dimensions, namely economic, social, and political globalization, to income inequality. Therefore, despite the current structure of the Iranian economy, the growth of globalization has led to an increase in inequality and will make the income distribution situation more critical.
Machine summary:
A Case Study of the Iranian Economy by introducing the new and comprehensive KOF Globalization Index 3 Aboulqasem Golkhandan 2 Davood Golkhandan 1 Mojtaba Khansari Received Date: 2014/06/10 Acceptance Date: 2014/09/00 Abstract: The relationship between globalization and income distribution is one of the important economic topics that has attracted the attention of economists, especially development economists, and various theories have been presented regarding it.
Given that most developing countries have an abundance of labor and therefore a comparative advantage in producing labor-intensive goods, free trade and the resulting expansion of labor-intensive exports, based on this theory, will lead to an increase in employment or wages and consequently a reduction in income inequality (Tsai and Huang 4, 2001: 0-4).
1- Figini and Gorg Table (3): Summaries of selected foreign and domestic studies conducted in the field of the research topic Researcher Location and period of Globalization indicator(s) Method Research result (Researchers) study study (technique) and year study study Ornek and Elvern 3 (1980-1999) Turkey Trade openness (intensity) are co-integrated and the causal relationship between these two variables is established via a two-way Granger (E- ) relationship.
The results of the band cointegration test, in order to examine the causal relationship from globalization to income inequality, in the four models under study, are presented in Table (5).
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