scholarly journals Globalization and Income Inequality: Comparative Analysis of the European Countries

2021 ◽  
Vol 92 ◽  
pp. 08003
Author(s):  
Irina Atanasova ◽  
Tsvetomir Tsvetkov

Research background: The globalization of the European countries within the EU and the Eurozone is primarily economic and is expressed by the free trade and the movement of capital and labour, which determines the incomes and the GDP. Globalization and its impact on inequality is becoming an essential and problematic issue, especially in the context of on-going economic integration processes between the countries in Europe, which seek to converge their economic, social and political systems in the Euro area. The process of inequality has become even more relevant in the context of globalization. Purpose of the article: The paper aims to examine the impact of globalization on the inequality in the developed and the emerging economies in Europe. Methods: On the basis of an econometric assessment, a comparative analysis of the effect of globalization on the inequality in the developed European countries and the emerging countries is carried out. Findings & Value added: The paper analyses the essential aspects and the effects of the income inequality dynamics, both horizontally and vertically. It also addresses the question of whether the effect of globalization on the economic growth and the inequality is the same for the developing and the developed countries, respectively. Based on the research, seven important conclusions are reached.

e-Finanse ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 20-32
Author(s):  
Grzegorz Golebiowski ◽  
Piotr Szczepankowski ◽  
Dorota Wisniewska

Abstract The article examines the impact of financialization on income inequality between 2004 and 2013, through a panel analysis of seven European countries. Moreover, it attempts to examine differences in the perception of the phenomenon between the selected European countries belonging to the G-7 and countries from Central and Eastern Europe. The results demonstrate the existence of individual effects, which means that the level of inequality under examination is influenced predominantly by country-specific factors. The most significant correlation is noticeable between the level of unemployment and the degree of income inequality. An increase in unemployment is accompanied by a rise in the disproportions in the level of income that individual citizens have at their disposal whereas a decrease in the unemployment level contributes to an improvement of the GINI coefficient. Simultaneously, the results confirm the existence of significant correlations between the level of the GINI coefficient and such financialization indicators as the share of employment in finance in total employment and the contribution of the financial sector to total value added creation. The most prominent dependency was discovered when a constructed synthetic indicator was adopted as an indicator of financialization. At the same time, analysis of the synthetic country financialization indicator points to a conclusion that the level of financialization is higher in European countries belonging to the G-7 (especially Great Britain) than in countries from Central and Eastern Europe.


Equilibrium ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. 325-355
Author(s):  
Agnieszka Małkowska ◽  
Maria Urbaniec ◽  
Małgorzata Kosała

Research background: In the era of the digital revolution, the Internet, automation and robotisation, new industrial relations and dynamic interactions among different stakeholders are giving rise to new opportunities and challenges. The changes associated with the enforcement of the ?Industry 4.0? concept require adaptation to these developments at different levels of the economy and society in order to support digital transformation. Purpose of the article: The aim of this paper is to measure and assess the impact of digital transformation on European countries (EU). The comparative analysis of technological development in EU countries includes three dimensions: the digitalisation of society (Society 4.0), the ability of the economy to face the challenges of technological development (Economy 4.0), as well as the exploitation of ICT in companies (Companies 4.0). Methods: The empirical section of the article was built on a two-stage analytical approach: (a) cluster analysis methods to assess differences and similarities between EU countries (Hierarchical Cluster and K-Means Cluster) and (b) the multi-criteria decision-making method (TOPSIS) to rank countries according to the adopted evaluation criteria. For the purposes of this analysis, data from the Eurostat database have been applied. Findings & value added: The results of this analysis demonstrate the impact of technological transformation on the economy and society in EU countries grouped according to a similar level of development, such as countries with high, medium and low performance. This has contributed to indicating the cohesion in technological development achieved by each country group and to recognising the digitalisation gap between EU Member States. The novelty of this study consists in applying the multi-stage, multi-criteria analysis based on cluster analysis and the TOPSIS method, as well as the comparative analysis of the impact of technological developments on the societies and economies of EU countries. This paper extends similar studies by focusing on the application of a broad range of indicators regarding a holistic perspective including three dimensions: societies, economies and companies. The results provide valuable insights into evaluating the technological progress in European countries.


1999 ◽  
Vol 32 (3) ◽  
pp. 363-395 ◽  
Author(s):  
VINCENT A. MAHLER ◽  
DAVID K. JESUIT ◽  
DOUGLAS D. ROSCOE

This article explores the relationship between international integration and domestic inequality in the developed countries in the mid-1980s and early 1990s. The analysis examines two major modes of integration, trade and direct investment, disaggregating each by economic sector and distinguishing between imports and exports, and inbound and outbound flows and stocks. In measuring income inequality, extensive use is made of micro-data sets that have recently become available through the Luxembourg Income Study (LIS), which provides much more detailed and comparable data on income inequality than has heretofore been the case. In particular, LIS data can be aggregated at the level of economic sector, and permit the comparison of pre- and post-government income. The study finds few significant relationships between either trade or investment and sectoral income distribution. The overall conclusion is that economic globalization is not a critically important factor in explaining recent trends in income inequality in the Western world.


2012 ◽  
Vol 58 (No. 1) ◽  
pp. 1-9
Author(s):  
Š. Bojnec ◽  
I. Fertő

This paper analyses the agro-food exports variety from twelve Central and Eastern European countries (CEECs) to the European Union (EU) during the years 1995–2007. The panel regression models explain the agro-food exports by its previous year, income in the importing EU countries, and measure of agro-food export product variety, while the real exchange rate appreciation of the CEEC currencies has negatively influenced agro-food exports. The EU enlargement with the reduction in agricultural protection and the borderless single market has induced agro-food export increases in primary agricultural produce and intermediate food-processed products, but less in higher value-added food-processed differentiated products. The impact of increased number of CEECs agro-food product varieties on agro-food export to the EU is positive.  


2004 ◽  
Vol 37 (9) ◽  
pp. 1025-1053 ◽  
Author(s):  
Vincent A. Mahler

This article assesses the impact of economic globalization and domestic political factors on income inequality and state redistribution in the developed countries over the past two decades, using household-level data from the Luxembourg Income Study that are more detailed, accurate, and cross-nationally comparable than those used in previous empirical work. It examines three major modes of international integration—trade, direct foreign investment, and international financial flows—as well as four domestic political variables—the partisan balance of national cabinets, electoral turnout, union density, and the centralization of wage-setting institutions. The study finds only scattered relationships between global integration and income distribution or redistribution but reasonably strong positive relationships between several domestic political variables and an egalitarian distribution of income and/or extensive state redistribution. These findings are consistent with a growing number of studies that emphasize the resilience of domestic political factors in the face of economic globalization.


Ekonomika ◽  
2008 ◽  
Vol 83 ◽  
Author(s):  
Maria Piotrowska

Economic integration can be defined as the expansion of markets from the national to the regional or to the world level. Therefore, two channels of market integration can be determined: regional integration, for instance, within the EU, and globalization. The purpose of this paper is to investigate the impact of the economic integration process on differences in income among and within Central and Eastern European countries (CEECs). The hypotheses on 1) the economic integration relevance and 2) the mechanisms through economic integration affecting income inequality are tested with data on 10 CEECs (Bulgaria, Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovakia, Slovenia, Romania) for the 2000-2006 period. An unbalanced panel induces to estimate Random-effects regressions and fixed-effects regressions. The results show that globalization contributed significantly to income inequality among CEECs as well as to the upward trend in income inequality within the societies of these countries, while regional integration with and within the EU did not explain considerably the changes in income distribution over the study period.


2007 ◽  
Vol 13 (2) ◽  
pp. 507-514
Author(s):  
Ivan Vuković

In this paper we researched European Union starting with the Agreement from Maastrich from year 1992, even though the European Union has a long traditional history and its origin is founded on regulations of economical integrations in Europe beginning from the 1950’s through the Roman treaty from year 1957 and the forming of the European Union Committee in year 1965. Further we follow her expansion and introduction of the European economic and monetary policy, to last, the joining perspective of Croatia. According to the Agreement from Maastrich, European Union lies on three posts: 1) Legal-political and regulative post, 2) Economical post, where the forming of European economical and monetary policy is in the first plan, especially the introducing of Euro as the unique European currency, 3) Post of Mutual foreign security policy within European Union. In that context we need to highlight the research conducted here and in European Union, including the world, regarding development of European Union and its economical, legal, political and cultural, as well as foreign diplomatic results, which are all perspectives of European Union. All the scientists and researches which were involved in exploring the development of EU with its modern tendencies and development perspective, agree that extraordinary results are achieved regards to economical, legal, political, foreign-security and diplomatic views, even tough many repercussions exist in progress of some particular members and within the EU as a whole. The biggest controversy arises in the perspective and expanding of European Union regarding ratification of the Constitution of EU from particular country members, but especially after the referendum was refused from two European countries, France and Netherlands. According to some estimates, the Constitution of EU would have difficulty to be adopted in Switzerland and some other Scandinavian countries, but also in Great Britain and other very developed countries. However the European Community and European Union were developing and expanding towards third European countries, regardless of Constitutional non-existence, where we can assume that if and when the Constitution of EU will be ratified, the EU will further develop as one of the most modern communities. This will enable economical development, especially development of European business, unique European market and free trade of goods and services, market of financial capital and labour market in free movement of labour. Being that EU has become one of the most largest dominating markets in the world, it offers a possibility to all new members to divide labour by using modern knowledge and high technology which insure economical, social and political prosperity. This results to forming a society of European countries which will guarantee all rights and freedom of development for all nations and ethnic groups. As well as, all European countries with somewhat less sovereignty, but in international relations will be stronger and significant, not only in sense of economics, but also in politics and military diplomatic relations. Therefore, Croatia has no choice and perspective if she does not join the European Union till year 2010, but until than it needs to create its strategy of economical and scientific-technological development, including demographic development, which will insure equal progress of Croatia as an equal member of European Union.


2021 ◽  
Vol 9 (1) ◽  
pp. 91-100
Author(s):  
Serhii Tsymbaliuk

The purpose of the article is to study the experience of developed countries in the regulation of sports and health in order to stimulate its development and adaptation to new challenges and threats. In the course of the research the methods of theoretical and comparative analysis were used to reveal the peculiarities of the American and European models of sports and health man-agement; statistical and graphical - to determine the economic role and trends in the sports and health industry in the world, the impact of the pandemic on income from sports. The article develops organizational and economic approaches to intensify the development of sports and recreation. Certain features of organizational models of management, sports legislation, financ-ing, possible tools to stimulate the development of sports and health in the developed world form a scientific basis for substantiating ways to intensify this area.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ferdinando Ofria ◽  
Massimo Mucciardi

PurposeThe purpose is to analyze the spatially varying impacts of corruption and public debt as % of GDP (proxies of government failures) on non-performing loans (NPLs) in European countries; comparing two periods: one prior to the crisis of 2007 and another one after that. The authors first modeled the NPLs with an ordinary lest square (OLS) regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the authors utilized the geographically weighted regression (GWR) to explore regional variations in the relationship between NPLs and the proxies of “Government failures”.Design/methodology/approachThe authors first modeled the NPL with an OLS regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the author utilized the Geographically Weighted Regression (GWR) (Fotheringham et al., 2002) to explore regional variations in the relationship between NPLs and proxies of “Government failures” (corruption and public debt as % of GDP).FindingsThe results confirm that corruption and public debt as % of GDP, after the crisis of 2007, have affected significantly on NPLs of the EU countries and the following countries neighboring the EU: Switzerland, Iceland, Norway, Montenegro, and Turkey.Originality/valueIn a spatial prospective, unprecedented in the literature, this research focused on the impact of corruption and public debt as % of GDP on NPLs in European countries. The positive correlation, as expected, between public debt and NPLs highlights that fiscal problems in Eurozone countries have led to an important rise of problem loans. The impact of institutional corruption on NPLs reports that the higher the corruption, the higher is the level of NPLs.


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