TY - RPRT AU - Neutel, Marcel AU - Heshmati, Almas TI - Globalisation, Inequality and Poverty Relationships: A Cross Country Evidence PY - 2006/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 2223 UR - https://www.iza.org/publications/dp2223 AB - In this research, the relationship between globalisation and poverty and income inequality is determined. A whole new globalisation index has been constructed based on data covering a large sample of 65 developing countries. The index is based on the globalisation index proposed by A.T. Kearney / Foreign Policy Magazine. The index is composed of four sub-indices, namely: economic integration, personal contacts, technological connections and political engagement. Results from cross-sectional regression analysis show that there is a significant relationship between globalisation and poverty and income inequality. Globalisation leads to poverty reduction and it reduces income inequality. The relationship between globalisation and poverty remains significant when controlled for regional heterogeneity. A non-linear analysis shows that poverty has diminishing returns to benefits from globalisation. KW - globalisation KW - poverty KW - inequality KW - indices ER -