The objective of this paper is to analyse the effect of economic globalization on income distribution in a panel sample of 22 developing countries from 2000 to 2015. Using the Gini net income coefficient and the Gini market income coefficient from the Standardized World Income Inequality Database as measure of inequality, we find that international trade reduces income inequality in developing countries. Results are robust with and without China in the sample of developing country on one hand and with both Gini coefficient on the order hand. But comparing the results obtained for Gini net income with those obtained with Gini market income we find that the latter has a greater reduction on income inequality on developing countries. This result points out the role of institution of the countries in the redistribution policies.
- income inequality