Globalization, Poverty And Income Inequality

997 Words2 Pages
Globalization is defined as the process of interaction and integration among the people, governments, and companies and among different nations. This process has effects on culture, environment, political system, trade system or economic system, human physical well-being, human’s development etc.
Now I am trying to some find relationship between globalization, poverty and income inequality. Globalization is defined as an economic concept. Studies trying to relate globalization, measured in terms of economic openness, financial integration and trade policies and other policies, to poverty and income inequality. Various studies show that globalization helps the poor whereas others said opposite. So far, there is only one study on the discussion
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Many people in international Organizations says that globalization promotes economic growth and poverty reduction. On the other hand, there is other group of economists or we can say other people who criticize economic performance of globalization is not according to that but very disappointing. It is argued that the globalization growth effects are not evident but international trade may be better than financial globalization. Now a days, many researchers caught attention regarding reaction of globalization on income inequality. There is a growing concern that globalization may increases income inequality and giving lesser attention on poverty alleviation. It needs to develop more vast and analysis about the effects of globalization on income inequality and poverty. I am writing this short essay to how globalization affects income distribution and poverty. First, I am trying to seek out the globalization development and international trade and its diverse effects on poverty and…show more content…
We see the interregional globalization is also very large, which shows among the geographical regions do not full determine the effects of globalization. Various Income inequality and poverty measures are used to see how they relate to globalization. We know that poverty is measured in different ways for example percentage of people living below the threshold, a poverty line which is defined by world bank that population living below one dollar a day or two dollar a day and the percentage of people living under the national poverty level. Income inequality is measured by Kuznets ratio and Gini coefficient. Globalization income inequality and poverty is first time measure through linear regression (Globalization income inequality and poverty is first time measure through linear regression (Linear regression is the most basic and commonly used predictive analysis. Regression estimates are used to describe data and to explain the relationship between one dependent variable and one or more independent variables.) In which it show high level of poverty very low, in it finds out that globalization improves the situation of poor in developing countries. It also show that the income disparities/inequalities also reduced by
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