THE IMPACT OF GLOBALIZATION ON INCOME DISTRIBUTION IN EMERGING ECONOMIES
Keywords:globalization, income inequality,, foreign direct investment
This study investigates the complex interplay between globalization and income disparities in developing nations. This research reveals complex dynamics by investigating the effects of trade openness, foreign direct investment (FDI) inflows, and technological connectivity on measures of income inequality, as well as the mediating function of economic growth and the moderating effects of institutional quality and labor market policies. Results show a strong impact of technological connection on income inequalities, ambiguous effects of FDI inflows, and a positive association between trade openness and disparity of income. The relationship between income inequality and globalization indices is partially mediated by economic growth. Additionally, the moderators institutional quality and labor market policies are revealed. In light of changing globalization, these observations have important policy ramifications for attaining more inclusive and equitable development routes.