The Impact of Globalization on Income Distribution: The Case of Hungary

Research Journal of International Studıes, Issue 21

9 Pages Posted: 21 May 2012 Last revised: 3 Jul 2019

See all articles by Andreas G. Georgantopoulos

Andreas G. Georgantopoulos

National and Kapodistrian University of Athens; Panteion University of Athens - Panteion University of Political and Social Sciences

Anastasios Tsamis

Panteion University of Athens

Date Written: October 1, 2011

Abstract

This study investigates using Ordinary Least Squares (OLS) methodology the impact of globalization on income distribution for the period 1990–2009 in Hungary. The empirical findings are in line with the conventional wisdom that opening up a national economy into the international market tends to decrease income inequality. Income distribution can be fairer by increasing trade volume and foreign capital penetration, while remittances can also have a positive effect. However, huge trade volume with negative trade balance or foreign direct investments that favor only the more skilled workers may lead to negative results. The globalization process can be beneficial but its nature should be closely monitored.

Keywords: income distribution, trade openness, foreign direct investments, remittances

JEL Classification: D31, F10, F21, F24

Suggested Citation

Georgantopoulos, Andreas G. and Tsamis, Anastasios, The Impact of Globalization on Income Distribution: The Case of Hungary (October 1, 2011). Research Journal of International Studıes, Issue 21, Available at SSRN: https://ssrn.com/abstract=2063022

Andreas G. Georgantopoulos (Contact Author)

National and Kapodistrian University of Athens ( email )

Greece

Panteion University of Athens - Panteion University of Political and Social Sciences ( email )

136 Sygrou
Athens
Greece

Anastasios Tsamis

Panteion University of Athens ( email )

Athens
Athens 117 45
Greece

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