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Do the poor benefit from globalization regardless of institutional quality?

In English

Författare

Summary, in English

Despite significant progress towards the Millennium goals, more than one billion people live on less than 1.25 US dollars per day. Previous research suggests that globalization stimulates poverty reduction, but does not investigate what role institutions play in this relationship. Theoretically, globalization could act as either a complement or a substitute to institutional quality in reducing poverty. We find that the poverty-reducing effect of globalization is stronger when institutions are weak. In particular, increasing social globalization reduces poverty more when corruption is high and democratic accountability is low. Thus, globalization has the power to reduce poverty even in countries with low institutional quality.

Publiceringsår

2016

Språk

Engelska

Sidor

702-712

Publikation/Tidskrift/Serie

Applied Economics Letters

Volym

23

Issue

10

Dokumenttyp

Artikel i tidskrift

Förlag

Routledge

Ämne

  • Economics

Nyckelord

  • Absolute poverty
  • globalization
  • institutions
  • information flows
  • D30
  • F15
  • I32

Status

Published

ISBN/ISSN/Övrigt

  • ISSN: 1466-4291