Global Value Chains and Domestic Income Inequality:Evidence based on Cross-Country Data
Based on the Eora MRIO database and the SWIID Database,this paper examines the impact of globalization on domestic income inequality in different economies,and shows the following findings through theoretical analysis and empirical testing:Firstly,GVC participation increases the level of a country's domestic income inequality,and this conclusion is still robust after using different samples and different indicators;Secondly,the elevation of GVC position of a country decrease its level of income inequality,mainly due to the increase in income inequality by the backward participation;Thirdly,the heterogeneity analysis concludes that the participation of developed countries in GVC has a greater impact on domestic income inequality than developing countries;Fourthly,Shapley method shows that domestic institutional factors,human capital construction and biased technological progress are the most important factors affecting income inequality.This paper suggests that in the process of GVC participation,a country should take the initiative to give full play to its domestic policy advantages,optimize its own environment,absorb the dividends released by globalization,while trying to avoid the aggravation of income inequality.
global value chainsincome inequalityShapley Decomposition
万方数据
