Impact of globalization on distribution of income

Impact of globalization on distribution of income

It is extensively believed that income disparity can be abridged through introductory up of the economies of developing countries into the world market. But changes in country’s trade exposure and world market can affect negatively the distribution of resources within the country. This paper empirically discovers the impact of globalization on income supply using econometric time series approach for the period 1972- 2005 in Pakistan. The results are in favor of the predictable wisdom that opening up of the economy into the international market has good effects on the circulation of income. Income inequality can be concentrated through foreign capital dispersion. Huge trade volume with damaging trade balance must be exact.