Globalization and Poverty Nexus: A Panel Data Analysis

Farzana Naheed Khan and Muhammad Tariq Majeed

Abstract

This study analytically explores and empirically tests the impact of different dimensions of globalization on cross-country poverty using a panel data set for 113 developing countries over the period 1980-2014. The empirical results show that globalization generally helps to reduce poverty. However, this effect is not consistent for different forms of globalization. Economic and social globalizations significantly help to reduce global poverty while the political globalization does not significantly cause poverty reduction in all models. The overall results of this study indicate that globalization ameliorates not accentuates poverty. Moreover, findings of the study are shown to be robust to different specifications and alternative econometric techniques.