Globalisation and its Impact on Poverty and Inequality Case Study of Lower Middle Income Countries

One cannot pinpoint when the process of globalisation began. Some historians lay emphasis on the age of exploration during the 1400s and some argue that it began after World War II. Despite the difference of opinion regarding its inception, it cannot be denied that the pace of globalisation has increased by leaps and bounds in the past 50 years. Past literature shows conflicting results according to the income status of the countries. In this paper, we aim to analyse how globalisation has affected inequality and poverty in a group of lower middle income countries from the period of 2004 2018. We found a strong negative correlation between poverty and income and poverty and human development. Globalisation and poverty have a very low positive correlation, and hence globalisation did not affect poverty directly as such in the time period under consideration. In case of inequality, we find a moderately positive correlation of that with globalisation. A low positive correlation was found between inequality and poverty rates. Inequality and human development significantly affected the poverty rates. An increase in inequality led to an increase in poverty as well, whereas improvements in human development led to decrease in poverty. Inequality is significantly influenced by globalisation and the GDP per capita. Globalisation exacerbated inequality, however, the parameter of GDP per capita, though significant, barely affected inequality. We can conclude that globalisation did not have a considerable effect on poverty, but on the other hand did increase inequality. Pragna Dutt | Elina Das | Arka Das "Globalisation and its Impact on Poverty and Inequality: Case Study of Lower-Middle Income Countries" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd57559.pdf Paper URL: https://www.ijtsrd.com.com/economics/development-economics/57559/globalisation-and-its-impact-on-poverty-and-inequality-case-study-of-lowermiddle-income-countries/pragna-dutt