| Abstract [eng] |
The main purpose of this master thesis is to assess the impact of globalization on economic growth and income inequality. The work consists of four main parts: the analysis of scientific literature, provided research methodology used in the work, performed research with its’ results, and conclusions with following recommendations. Literature analysis reviews the concept of globalization, economic growth and inequality. It also covers the results of research examining the impact of globalization on economic growth and income inequality. Additionally, in literature analysis possible relationship between two dependent variables was reviewed on a theoretical basis. After the literature analysis review, variables were described, the interrelationships of which were investigated in a panel database due to the large scope of the study. Panel database included nine variables for 15 years period of 37 countries belonging to Organisation for Economic Co-operation and Development (OECD). In order get the most information from selected data, results were calculated using the usual Ordinary Least Squares method, as well specified by fixed and random effects estimator. Empirical research revealed that globalization does not have a direct impact on economic growth, however, it has a positive and significant impact to the dependent variables included to the research – export to GDP and FDI to GDP ratios which are usually treated as one of the key drivers of economic growth. The results of the study also shown that globalization has a negative and significant impact on income inequality. As a result, the level of income inequality is declining as OECD member-countries are becoming more global. A significant negative impact was also found when examining the relationship between trade (as a share of GDP) and the level of income inequality, which also reveals that the increasing volume of trade, which reflects the country's openness, contributes to the reduction of income inequality. Yet, no significant relationships were identified in the examination of the relationship between the two main dependent variables - economic growth and income inequality, the main dependent variables Conclusions and recommendations summarise the key findings and outcomes of performed research. The author believes that the results of the study could give useful guidelines to the governmental institutions related to export promotion measures, that could help businesses to expand and to cause sustainable economic growth in the countries. Also, it is recommended that data from several developing countries would be included to further studies, that would help to assess how the impact of globalization varies on poorer countries. |
