2014

Is Globalization Reducing Absolute Poverty?

Reprint No. 2014:47

Author(s): Andreas Bergh and Therese NilssonYear: 2014 Title: World Development Volume (No.): 62 (October) Pages: 42–61
Online article (restrictions may apply)
Preliminary version


Using data from 114 countries (1983–2007), we examine the relationship between globalization and World Bank absolute poverty estimates. We find a significant negative correlation between globalization and poverty, robust to several econometric specifications, including a fixed-effect panel—a “long run” first difference—and a pooled OLS-regression. Introducing two instruments for globalization we also show that results are robust to correction for potential endogeneity. We motivate and test the instruments in several ways. In particular information flows and more liberal trade restrictions robustly correlate with lower absolute poverty.


Reference:
Bergh, Andreas and Therese Nilsson (2014), "Is Globalization Reducing Absolute Poverty?". World Development 62(October), 42–61.

Andreas Bergh

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Mob: 070 779 0734
andreas.bergh@ifn.se

Therese Nilsson

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Ph: +46 46 222 4643
Mob: +46 73 396 7919
therese.nilsson@nek.l...

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