The Top 10% Are The Main Beneficiaries Of Globalization, Says Study

According to a study by the International Monetary Fund published in The Journal of Economic Inequality, the top 10% are the main beneficiaries of globalization.

The Top 10% Are The Main Beneficiaries Of Globalization, Says Study 1

The previous 50 years of economic globalization have resulted in a significant increase in the income of many people worldwide. These gains in income are not evenly distributed, though. According to a study by International Monetary Fund co-author Marina M. Tavares and Dr. Valentin Lang, junior professor of political economy at the University of Mannheim, the top 10% of the country’s income distributions have profited most from this growth.

The study’s findings, which were published in The Journal of Economic Inequality, attempted to address the questions of whether and how globalization over the past 50 years has impacted global disparities in wealth.

The Top 10% Are The Main Beneficiaries Of Globalization, Says Study 2
Collinearity of globalization indicators. Credit: The Journal of Economic Inequality (2023). DOI: 10.1007/s10888-023-09593-7

According to their research, many countries’ income disparities have increased as a result of globalization. Particularly in nations like China, Russia, and some Eastern European nations that have integrated further into the global economy, the gap between the rich and the poor has gotten wider. Globalization has simultaneously lessened national inequality. As a result, the contribution of national disparities to the global inequality rate is decreasing.

“The influence of globalization on income inequalities worldwide was greater than we had expected,” summarizes Valentin Lang, junior professor of International Political Economy at the University of Mannheim and author of the study. “We were particularly surprised that these differences were mainly due to the gains of the richest and that the lower income groups benefited little or not at all.”

Increasing skepticism towards globalizationIncreasing skepticism towards globalization

Additionally, the analysis demonstrates that whereas early and medium stages of globalization contributed significantly to income rises in each nation, the growth effects of globalization diminish with increasing degrees of globalization. “The benefits of globalization become smaller during the integration process, while the costs of distribution become higher. This matches the increasing skepticism towards globalization which can be observed in countries with a high level of economic integration,” Lang concludes.

The authors employed a novel empirical methodology to analyze economic globalization. They pooled trade, financial, and regulatory data spanning the previous fifty years and connected it to the varying rates and geographic concentrations of economic liberalization policies in the various nations.

Meanwhile, as reported by GreatGameIndia, an Associated Press analysis revealed that China’s loans are pushing the world’s poorest countries to the brink of collapse, indicating a challenging aspect of globalization’s impact on global economic dynamics.

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  1. Yes, the Jews and their Human Slaves have all become immensely rich
    by stealing everything the poor Humans have!
    But that will change this year!
    The Nazis will be hanged for Treason and burn in Hell!
    And “israel” will be returned to the Palestinians!

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