Globalization and Income Distribution Dataset 1975-2002
Macroeconomics - Indicators
Dataset used in World Bank Policy Research Working Paper #2876, published in World Bank Economic Review, No. 1, 2005, pp. 21-44.
The effects of globalization on income distribution in rich and poor countries are a matter of controversy. While international trade theory in its most abstract formulation implies that increased trade and foreign investment should make income distribution more equal in poor countries and less equal in rich countries, finding these effects has proved elusive. The author presents another attempt to discern the effects of globalization by using data from household budget surveys and looking at the impact of openness and foreign direct investment on relative income shares of low and high deciles. The author finds some evidence that at very low average income levels, it is the rich who benefit from openness. As income levels rise to those of countries such as Chile, Colombia, or Czech Republic, for example, the situation changes, and it is the relative income of the poor and the middle class that rises compared with the rich. It seems that openness makes income distribution worse before making it better-or differently in that the effect of openness on a country's income distribution depends on the country's initial income level.
Kind of Data
Aggregate data [agg]
The dataset inlcludes indicators related to:
- Exchange rate
- Interest rate
Producers and sponsors
Branko L. Milanovic
Dates of Data Collection
Development Research Group
Use of the dataset must be acknowledged using a citation which would include:
- the Identification of the Primary Investigator
- the title of the survey (including acronym and year of implementation)
- the survey reference number
- the source and date of download
Branko L. Milanovic, World Bank. Globalization and Income Distribution Dataset (GID) 1975-2002. Ref. WLD_2002_GID_v01_M. Dataset downloaded from http://microdata.worldbank.org on [date]
Disclaimer and copyrights
The user of the data acknowledges that the original collector of the data, the authorized distributor of the data, and the relevant funding agency bear no responsibility for use of the data or for interpretations or inferences based upon such uses.