The Impact of Economic Globalization on Income Inequality in Developing Countries: Case Study of Türkiye

Globalization has been characterized as an inevitable development in the global financial and economic system with the rapid increase in technological development as well as the need for interdependence between states. Considering the ever-increasing trend of globalization, it is important to understand the impacts of globalization with its many aspects on countries. Although developed countries have enjoyed many of the benefits of globalization including its political, cultural as well as economic aspects, the impact of globalization on developing countries has been a more disputed issue. It is important to understand the benefits and detriments of globalization, specifically economic globalization on developing countries as developing countries tend to be more vulnerable and volatile when it comes to their economic and financial stability. The reasons behind the higher detrimental impacts of economic globalization on developing countries range from a lack of stable and strong financial institutions to the already existing economic and financial difficulties which developing countries face. This paper will aim to analyze the impact of economic globalization, specifically on income inequality in Türkiye as a developing country. The findings of the study have demonstrated that the impact of economic globalization on income inequality in recent years is not as significant, however developing countries must beware of the detrimental impacts that economic globalization might have should the domestic financial institutions and markets be caught unprepared.