THE IMPACT OF GLOBAL ECONOMIC INTEGRATION IN REDUCTION OF INCOME INEQUALITY IN DEVELOPING COUNTRIES: EVIDENCE FROM BANGLADESH


Sifat Siddiquee
Lecturer, Department of Business Administration, City University, Bangladesh
Abstract
Economic Integration is the core corner of Globalization which has effect on inequality and poverty specially in developing countries. This paper focus on income inequality evidence from Bangladesh using one of the major sectors of Globalization (i.e. Economic Integration). The researcher conducted Time series data and KPSS test to identify the units root among the representative variables and the Vector Error Correction Model to tie the short-term behavior of the variables and the Johansen-Juselius (1990) maximum likelihood approach to assess the presence of cointegration of the variable which reveals the long-term link of the variables. We have found a positive and beneficial capital labor ratio and output labor ratio. Foreign Direct Investment (FDI) output ratio shows a negative impact on output labor ratio. Furthermore, we have found negative relationship between income distribution and real GDP, openness, regime dummy and FDI output ratio which means managed floating exchange rate contributing to increase inequality.
Keywords: Globalization, Trade Openness, FDI, Income Inequality, KPSS, GDP, floating exchange rate, Bangladesh.
Journal Name :
EPRA International Journal of Economics, Business and Management Studies (EBMS)

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Published on : 2026-04-14

Vol : 13
Issue : 4
Month : April
Year : 2026
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