Authors
1 Associate Professor, University of Tehran, Facualty of Economics
2 M.A in Economics
Abstract
The impact of globalization on income distribution is one of the most important issues among economists regardless of their views on globalization. In this study we investigate the impact of globalization on income distribution in Iran using the data for the period 1968-2004 and Johanson - Joselius co-integration method. We use the index of trade intensive (the ratio of the sum of export and import to GDP) as a globalization measurement standard. The rate of inflation and unemployment, government public expenditure and per capita income as other effective variables on income distribution.The results of estimation confirms the Kuznets hypothesis in Iranian economy, and the rate of inflation and unemployment have direct relationship with income inequality. The ratio of government public expenditure to GDP has direct relationship with the improvement of income distribution, and globalization would increase income inequality..
Keywords
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