Globalization and Energy Consumption: Empirical Implications for Income Inequality in Developing Countries
DOI:
https://doi.org/10.47067/reads.v8i2.440Keywords:
Globalization, Energy Consumption, Income InequalityAbstract
The objective of this study is to envisage the impact of globalization and energy consumption on income inequality in developing countries. The specific objectives are to discover the impact of economic, social, political, and overall globalization along with energy consumption on income inequality. To attain the empirical outcomes, this study employed the System-GMM on a panel dataset from 1996 to 2018 in a sample of sixty-nine developing countries as per the classification of World Bank. To further validate the empirical outcomes different interaction terms between overall globalization and energy use, political globalization and energy consumption, social globalization and energy consumption are all regressed on income inequality. The main finding of this study is that income inequality is positively affected by globalization and is statistically significant. This research also discovered a negative correlation between energy consumption and income inequality. The study suggests that developing nations should adopt policies to open their markets to the entire world, make effective use of globalization, and promote policies that reduce income inequality.
References
Abakumova, J., & Primierova, O. (2018). Economic growth, globalization and income inequality: the case of Ukraine. 18th International Scientific Conference Globalization and Its Socio-Economic Consequences, 18(October).
Acheampong, A. O., Dzator, J., & Shahbaz, M. (2021). Empowering the powerless: Does access to energy improve income inequality? Energy Economics, 99. https://doi.org/10.1016/j.eneco.2021.105288
Adams, S. (2008). Globalization and income inequality: Implications for intellectual property rights. Journal of Policy Modeling, 30(5). https://doi.org/10.1016/j.jpolmod.2007.10.005
Adnen, B. N., Balcilar, M., & Gupta, R. (2017). Kuznets Curve for the US: A Reconsideration Using Cosummability.
Aghaei, M., & Lin Lawell, C. Y. C. (2020). ENERGY, ECONOMIC GROWTH, INEQUALITY, and POVERTY in IRAN. Singapore Economic Review. https://doi.org/10.1142/S0217590820500198
Aimon, H., Kurniadi, A. P., & Satrio, M. K. (2020). ANALYSIS OF INCLUSIVE GROWTH IN POVERTY, UNEMPLOYMENT AND INCOME INEQUALITY IN WEST SUMATERA PROVINCE: PANEL ERROR CORRECTION MODEL APPROACH. Jurnal Benefita, 5(1). https://doi.org/10.22216/jbe.v5i1.4901
AKINBODE, S. O., BOLARINWA, T. M., & HASSAN, O. O. (2020). ECONOMIC GROWTH AND INCOME INEQUALITY IN SUB-SAHARAN AFRICA. Journal of Humanities, Social Science and Creative Arts, 14(1). https://doi.org/10.51406/jhssca.v14i1.2053
Baek, I., & Shi, Q. (2016). Impact of Economic Globalization on Income Inequality: Developed Economies vs Emerging Economies. Global Economy Journal, 16(1), 49–61. https://doi.org/10.1515/gej-2015-0047
Balan, F., Torun, M., & Kilic, C. (2015). Globalization and Income Inequality in G7: A Bootstrap Panel Granger Causality Analysis. International Journal of Economics and Finance, 7(10). https://doi.org/10.5539/ijef.v7n10p192
Baten, J., & Mumme, C. (2010). Globalization and educational inequality during the 18 th to 20 th centuries: Latin America in global comparison. Revista de Historia Economica - Journal of Iberian and Latin American Economic History, 28(2). https://doi.org/10.1017/S021261091000008X
Bergh, A., & Nilsson, T. (2010). Do liberalization and globalization increase income inequality? European Journal of Political Economy, 26(4). https://doi.org/10.1016/j.ejpoleco.2010.03.002
Bor, J., Cohen, G. H., & Galea, S. (2017). Population health in an era of rising income inequality: USA, 1980–2015. In The Lancet (Vol. 389, Issue 10077). https://doi.org/10.1016/S0140-6736(17)30571-8
Borraz, F., & Lopez-Cordova, J. E. (n.d.). Has Globalization Deepened Income Inequality in Mexico?
Butler, J., Wildermuth, G. A., Thiede, B. C., & Brown, D. L. (2020). Population Change and Income Inequality in Rural America. Population Research and Policy Review, 39(5). https://doi.org/10.1007/s11113-020-09606-7
Carvalho, L., & di Guilmi, C. (2020). Technological unemployment and income inequality: a stock-flow consistent agent-based approach. Journal of Evolutionary Economics, 30(1). https://doi.org/10.1007/s00191-019-00628-9
Castells-Quintana, D., & Royuela, V. (2012). Unemployment and long-run economic growth: The role of income inequality and urbanisation. Investigaciones Regionales - Journal of Regional Research, 24.
Chang, J. J., & Hung, H. W. (2014). Trade unions, unemployment, economic growth, and income inequality. Macroeconomic Dynamics, 20(1). https://doi.org/10.1017/S1365100514000443
Chordokrak, C., & Chintrakarn, P. (2011). Globalization, technology, and income inequality: New evidence. International Research Journal of Finance and Economics, 62.
Costantini, M., Meco, I., & Paradiso, A. (2018). Do inequality, unemployment and deterrence affect crime over the long run? Regional Studies, 52(4). https://doi.org/10.1080/00343404.2017.1341626
Crouch, C. (2019). Inequality in post-industrial societies. Structural Change and Economic Dynamics, 51. https://doi.org/10.1016/j.strueco.2019.07.011
Curran, M., & Mahutga, M. C. (2018). Income Inequality and Population Health: A Global Gradient? Journal of Health and Social Behavior, 59(4). https://doi.org/10.1177/0022146518808028
Deininger, K., & Squire, L. (1997). Economic growth and income inequality: reexamining the links. Finance and Development, 34(1).
Destek, M. A. (2018). Dimensions of globalization and income inequality in transition economies: Taking into account crosssectional dependence. Eastern Journal of European Studies, 9(2).
Dong, Z., Tang, C., & Wei, X. (2018). Does population aging intensify income inequality? Evidence from China. Journal of the Asia Pacific Economy, 23(1). https://doi.org/10.1080/13547860.2017.1354270
Dorn, F., Fuest, C., & Potrafke, N. (2018). Globalization and Income Inequality Revisited. www.RePEc.org
Dreher, A., & Gaston, N. (2008). Has globalization increased inequality? Review of International Economics, 16(3). https://doi.org/10.1111/j.1467-9396.2008.00743.x
Duan, C., & Chen, B. (2018). Analysis of global energy consumption inequality by using Lorenz curve. Energy Procedia, 152, 750–755. https://doi.org/10.1016/j.egypro.2018.09.240
Firebaugh, G., & Goesling, B. (2004). Accounting for the recent decline in global income inequality. American Journal of Sociology, 110(2). https://doi.org/10.1086/421541
Galvin, R., & Sunikka-Blank, M. (2018). Economic Inequality and Household Energy Consumption in High-income Countries: A Challenge for Social Science Based Energy Research. Ecological Economics, 153. https://doi.org/10.1016/j.ecolecon.2018.07.003
Heimberger, P. (2020). Does economic globalisation affect income inequality? A meta-analysis. World Economy, 43(11). https://doi.org/10.1111/twec.13007
Hoffmann, F., Lee, D. S., & Lemieux, T. (2020). Growing income inequality in the United States and other advanced economies. Journal of Economic Perspectives, 34(4). https://doi.org/10.1257/JEP.34.4.52
Hulme, D., & Shepherd, A. (2003). Conceptualizing chronic poverty. World development, 31(3), 403-423.
Hung, H. F. (2021). Recent Trends in Global Economic Inequality. In Annual Review of Sociology (Vol. 47). https://doi.org/10.1146/annurev-soc-090320-105810
Hwang, S., Choe, C., & Choi, K. (2021). Population ageing and income inequality. Journal of the Economics of Ageing, 20. https://doi.org/10.1016/j.jeoa.2021.100345
KARACAN, R., YARDIMCI, M. E., & ??LEYEN, A. (2021). The Effect of Regime on the Economic Growth and the Income Inequality. OPUS Uluslararas? Toplum Ara?t?rmalar? Dergisi. https://doi.org/10.26466/opus.927567
Lee, C. C., Lee, C. C., & Lien, D. (2020). Income inequality, globalization, and country risk: A cross-country analysis. Technological and Economic Development of Economy, 26(2), 379–404. https://doi.org/10.3846/tede.2019.11414
Mainali, B., Pachauri, S., Rao, N. D., & Silveira, S. (2014). Assessing rural energy sustainability in developing countries. Energy for Sustainable Development, 19(1). https://doi.org/10.1016/j.esd.2014.01.008
Mishchuk, H., Samoliuk, N., Bilan, Y., & Streimikiene, D. (2018). Income inequality and its consequences within the framework of social justice. Problemy Ekorozwoju, 13(2).
Mocan, H. N. (n.d.). STRUCTURAL UNEMPLOYMENT, CYCLICAL UNEMPLOYMENT, AND INCOME INEQUALITY.
Molero-Simarro, R. (2017). Growth and inequality revisited: The role of primary distribution of income. A new approach for understanding today’s economic and social crises. Cambridge Journal of Economics, 41(2). https://doi.org/10.1093/cje/bew017
Muryani, Esquivias, M. A., Sethi, N., & Iswanti, H. (2021). Dynamics of Income Inequality, Investment, and Unemployment in Indonesia. Journal of Population and Social Studies, 29. https://doi.org/10.25133/JPSSv292021.040
Nam, Y. (2020). Do welfare benefits compensate for globalization among affluent democracies? Journal of European Social Policy, 30(2). https://doi.org/10.1177/0958928719886796
Ningsih, C., & Choi, Y.-J. (2019). An Effect of Internet Penetration on Income Inequality in Southeast Asia Countries. Information Society & Media, 20(3). https://doi.org/10.52558/ism.2019.12.20.3.121
Odusola A, M. F. W. Y. R. W. (n.d.). Income Inequality and Population Growth in Africa.
Rougoor, W., & van Marrewijk, C. (2015). Demography, Growth, and Global Income Inequality. World Development, 74. https://doi.org/10.1016/j.worlddev.2015.05.013
Sehrawat, M. (2021). Modelling the nexus between human capital, income inequality, and energy demand in India: new evidences from asymmetric and non-linear analysis. Environmental Science and Pollution Research, 28(3). https://doi.org/10.1007/s11356-020-10733-z
Serin Oktay, D. (2019). Asymmetric Impact of Inflation and Unemployment on Income Inequality: The Case of Turkey. International Conference on Eurasian Economies 2019. https://doi.org/10.36880/c11.02309
Shayegh, S. (2017). Outward migration may alter population dynamics and income inequality. Nature Climate Change, 7(11). https://doi.org/10.1038/nclimate3420
Sheng, L. (2015). Theorizing income inequality in the face of financial globalization. Social Science Journal, 52(3). https://doi.org/10.1016/j.soscij.2014.06.003
Sheng, Y. (2012). Unemployment and Income Inequality: A Puzzling Finding from the US in 1941-2010. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2020744
Sonora, R. J. (2021). A panel analysis of income inequality and energy use. Contemporary Economic Policy. https://doi.org/10.1111/coep.12550
Tamasauskiene, Z., & Ži?kien?, S. (2021). An investigation of the nexus between globalisation dimensions and income inequality. Entrepreneurial Business and Economics Review, 9(2). https://doi.org/10.15678/EBER.2021.090203
Topcu, M., & Tugcu, C. T. (2020). The impact of renewable energy consumption on income inequality: Evidence from developed countries. Renewable Energy, 151, 1134–1140. https://doi.org/10.1016/j.renene.2019.11.103
Tumba Henry, J., & Panotani, P. A. (2019). Relationship between per Capita National Income and Income Inequality: Is the Kuznets Hypothesis True for Nigeria? In International Journal of Innovative Science and Research Technology (Vol. 4, Issue 4). www.ijisrt.com198
Yang, W., & Kanavos, P. (2012). The less healthy urban population: income-related health inequality in China. BMC Public Health, 12. https://doi.org/10.1186/1471-2458-12-804
Yang, Y., & Greaney, T. M. (2017). Economic growth and income inequality in the Asia-Pacific region: A comparative study of China, Japan, South Korea, and the United States. Journal of Asian Economics, 48. https://doi.org/10.1016/j.asieco.2016.10.008
York, M. (2018). Revolutionary Love and Alter-globalisation: Towards a New Development Ethic. Social Change, 48(4). https://doi.org/10.1177/0049085718801402
Younsi, M., & Bechtini, M. (2020). Economic Growth, Financial Development, and Income Inequality in BRICS Countries: Does Kuznets’ Inverted U-Shaped Curve Exist? Journal of the Knowledge Economy, 11(2). https://doi.org/10.1007/s13132-018-0569-2
Zhan, P., Ma, X., & Li, S. (2021). Migration, population aging, and income inequality in China. Journal of Asian Economics, 76. https://doi.org/10.1016/j.asieco.2021.101351
Zhong, H. (2011). The impact of population aging on income inequality in developing countries: Evidence from rural China. China Economic Review, 22(1). https://doi.org/10.1016/j.chieco.2010.09.003
Zucman, G. (2019). Global Wealth Inequality. In Annual Review of Economics (Vol. 11). https://doi.org/10.1146/annurev-economics-080218-025852
Zungu, L. T., Greyling, L., & Mbatha, N. (2021). Economic growth and income inequality: a non-linear econometrics analysis of the SADC region, 1990–2015. African Journal of Economic and Management Studies, 12(2). https://doi.org/10.1108/AJEMS-09-2020-0465
