Do the Poor Benefit from Globalization Regardless of Institutional Quality?

Reprint No. 2016:23

Author(s): Andreas Bergh, Irina Mirkina and Therese NilssonYear: 2016 Title: Applied Economics Letters Volume (No.): 23 (10) Pages: 708–712
Online article (restrictions may apply)

Despite significant progress towards the Millennium goals, more than one billion people live on less than 1.25 US dollars per day. Previous research suggests that globalization stimulates poverty reduction, but does not investigate what role institutions play in this relationship. Theoretically, globalization could act as either a complement or a substitute to institutional quality in reducing poverty. We find that the poverty-reducing effect of globalization is stronger when institutions are weak. In particular, increasing social globalization reduces poverty more when corruption is high and democratic accountability is low. Thus, globalization has the power to reduce poverty even in countries with low institutional quality.

Bergh, Andreas, Irina Mirkina and Therese Nilsson (2016), "Do the Poor Benefit from Globalization Regardless of Institutional Quality?". Applied Economics Letters 23(10), 708–712.

Andreas Bergh


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Therese Nilsson


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An Introduction to the Relationship between Inequality and Health

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In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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