The Wealth (and Want) of Nations: The Impact of Economic Globalization on the Developing World

In: Perspectives on Global Development and Technology
Dwight Haase Department of Sociology and Anthropology University of Toledo

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In this article I review the literature on four outcomes of economic globalization: growth, wages, poverty, and inequality. Special attention is given to the importance of these outcomes for people of developing nations. Findings in the literature show a correlation between economic globalization and economic growth, but the relationship is much stronger for some nations than for others. Evidence on wages also shows uneven benefits from economic globalization. The evidence on poverty is inconclusive, while several authors note growing inequality within nations. These studies highlight the need for more research that includes extraneous factors, such as foreign aid and remittances. Further research also should refine the unit of analysis and gather extensive data from the informal sector.

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