In this paper, we will try to determine if any of the theoretical camps are “right” and if so, which one. We will first review current literature to clarify which arguments frame the respective pro and con attitudes towards globalization. This will include theoretical approaches as well as previous studies done in the field.
We will then empirically analyze the issue ourselves with the newest available data. To do so, we will first need to establish practicable definitions of globalization, poverty and inequality, and then try to find relation-ships between these factors. Lastly, we will interpret our results. To conclude, we will summarize our findings and discuss any limitations of our research.
Table of Contents
1. Introduction – Divided Views on Globalization
2. Theoretical Framework
2.1 Modern or Dependent?
2.2 Findings and Causal Mechanisms in Previous Literature
3. What is Globalization? – Finding a Definition
3.1 Explaining Poverty and Inequality
4. The Research Design
4.1 Introduction and Description of Applied Variables
4.2 Correlation Analyses
5. Limitations and Concluding Thoughts
6. Publication Bibliography
7. Appendix
Research Objectives and Core Themes
This paper aims to examine the debate surrounding globalization by empirically analyzing its relationship with world poverty and income inequality through a cross-sectional analysis using the KOF Index of Globalization. The study seeks to determine whether globalization exacerbates or alleviates poverty and inequality, evaluating competing theories such as modernization theory against dependency theory.
- Theoretical examination of modernization versus dependency theories.
- Development of a multidimensional definition of globalization.
- Empirical analysis of the relationship between globalization, absolute/relative poverty, and GINI-based income inequality.
- Comparative analysis of OECD versus non-OECD country data.
- Critical discussion on limitations of cross-sectional methodology in capturing causal relationships.
Excerpt from the Book
1. Introduction – Divided Views on Globalization
The world’s 85 richest people possess more financial wealth than the world’s 3.5 billion poorest; evidently, inequality presents “one of the biggest economic, social, and political challenges of our time” (Seery/Arendat 2014, p. 7). Poverty is inextricably linked to the issue of inequality and therefore must be analyzed in the same context (Edelman, 2013). Countries with high levels of inequality most likely have high levels of poverty, and the inverse corresponds (EAPN Social Inclusion Work Group 2009). Poverty limits equality of opportunities for education, health, and standards of living, dividing society into the “haves” and the “have-nots.” Whether in scholarly research and academic literature or the current political climate, critics point to rapid globalization as the source. Presently, the controversy of the Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the United States could not be of higher contentious debate; but the arguments made thereof may be only a fragment of an even bigger dispute: what degree of global integration is best and what are its potential consequences?
Moreover, how truly beneficial is globalization over-all? Supporters argue it enhances economic growth and diminishes poverty. Critics believe it contributes to added wealth for the rich and increasing poverty for the poor, and consequently, the loss of the middle class and widening of the social gap. Both sides back their arguments with ‘facts’ and studies, confidently proposing their views: […] the confidence with which officials of international financial institutions and opinion-makers in influential newspapers and magazines assert their belief in the value of global free markets in expanding the horizons for the poor is only matched by the passionate intensity with which activist protesters hold their opposite belief. (Bardhan 2005, pp. 1–2)
Summary of Chapters
1. Introduction – Divided Views on Globalization: This chapter introduces the conflicting perspectives on globalization's impact on poverty and inequality and outlines the research objective to empirically test these claims.
2. Theoretical Framework: This section reviews modernization and dependency theories to provide a theoretical basis for understanding the polarized debate on global economic integration.
3. What is Globalization? – Finding a Definition: This chapter discusses the complexity of defining globalization and establishes a multidimensional definition covering economic, political, and social facets.
4. The Research Design: This section details the methodology, including the use of the KOF Index, World Bank data, and GINI coefficients to perform a cross-sectional correlation analysis.
5. Limitations and Concluding Thoughts: This chapter summarizes the empirical findings, acknowledges methodological limitations, and suggests directions for future research regarding causal mechanisms.
6. Publication Bibliography: A comprehensive list of academic sources and datasets utilized in the study.
7. Appendix: This section provides the raw data table for the countries analyzed, including their KOF, GINI, poverty, HDI, and GDP values.
Keywords
Globalization, Poverty, Income Inequality, Modernization Theory, Dependency Theory, KOF Index, Economic Growth, Cross-Sectional Analysis, World Bank, GINI Index, Trade Integration, Absolute Poverty, Relative Poverty, OECD, Human Development Index.
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on empirically testing the controversial effects of globalization on income inequality and poverty levels across different nations.
What are the main thematic areas covered?
The work covers theoretical development, the definition of globalization as a multidimensional concept, research design using global indices, and the statistical correlation between global integration and social welfare metrics.
What is the central research question?
The central question is whether a higher degree of globalization relates to increased or decreased levels of poverty and inequality within countries.
Which scientific method is employed?
The study utilizes a quantitative, cross-sectional analysis, calculating Pearson correlations between KOF Globalization Index scores and various indicators like GINI coefficients and poverty headcount ratios.
What topics are discussed in the main body?
The main body discusses the theoretical contrast between modernization and dependency theories, defines globalization, outlines the selection of variables, and presents correlation analyses for both OECD and non-OECD country groupings.
Which keywords characterize this paper?
The paper is characterized by terms such as globalization, poverty, income inequality, KOF Index, modernization theory, and cross-sectional analysis.
How does the author define globalization?
The author defines globalization in a broad sense as a process that connects economies, governments, and social networks on a world scale and intensifies their interactions and global integration.
Why did the author choose the KOF Index?
The KOF Index was selected because it is multidimensional, covering economic, social, and political aspects of globalization, rather than focusing solely on economic variables.
What does the correlation analysis suggest?
The analysis suggests a negative relationship between globalization and poverty/inequality, implying that more globalized countries tend to have lower levels of both poverty and income inequality.
How does the study address the differences between developed and developing nations?
The study performs a comparative analysis by splitting the sample into OECD (higher developed) and non-OECD countries to determine if the effects of globalization vary by development status.
- Citation du texte
- Kelvin Okundaye (Auteur), 2016, The Effect of Globalization on World Poverty and Income Inequality, Munich, GRIN Verlag, https://www.grin.com/document/414604
