  This study examines the relationship between globalization and income
inequality, utilizing panel data spanning from 1992 to 2020. Globalization is
measured by the World Bank global-link indicators such as FDI, Remittance,
Trade Openness, and Migration while income inequality is measured by Gini
Coefficient and the median income of 50% of the population. The fixed effect
panel data analysis provides empirical evidence indicating that globalization
tends to reduce income inequality, though its impact varies between developed
and developing countries. The analysis reveals a strong negative correlation
between net foreign direct investment (FDI) inflows and inequality in
developing countries, while no such relationship was found for developed
countries.The relationship holds even if we consider an alternative measure of
inequality. However, when dividing countries by developed and developing
groups, no statistically significant relationship was observed. Policymakers
can use these findings to support efforts to increase FDI, trade, tourism, and
migration to promote growth and reduce income inequality.
