Globalization and Income Inequality: Evidence from BRICS Countries and Turkey

Globalization and Income Inequality: Evidence from BRICS Countries and Turkey
Author: Büşra Bahadir
Degree: Master in Economics
Date: 2019
Institution: Marmara University, Istanbul, Turkey
Advisor: Asst. Prof. Bilge Eriş Dereli

This thesis investigates the relationship between globalization and income inequality in BRICS countries (Brazil, Russia, India, China, South Africa) and Turkey over 1990–2015. Using panel data techniques, it explores how trade and financial globalization affect within-country income distribution.

Key findings include: Trade openness (imports and exports) tends to increase income inequality, indicating a disequalizing effect. Financial globalization, measured through capital account openness and stock market turnover, significantly drives inequality in these countries. High-technology exports show an absolute skill-biased effect, benefiting skilled workers disproportionately. Other factors such as private credit, population growth, and consumer price index contribute to unequal distribution of globalization benefits.

The study highlights that globalization, while promoting economic integration and growth, may exacerbate income disparities unless complementary policies are implemented to ensure inclusive development.