Globalization, Remittances, and Income Inequality: A Novel Multivariate Quantile-on-Quantile Regression (M-QQR) Perspective for Top Receiving Countries

Abstract This study extends the depth of academic literature by evaluating the imperatives of remittances, national income, and technology on the globalization-inequality nexus in the top 3 remittance-receiving countries. Furthermore, a novel multivariate quantile-on-quantile regression model and the causality-in-quantile procedure were relied upon for the analysis of annual datasets of four decades for each country. Based on the empirical estimates, it is established that inequality is self-reinforcing in China and Mexico. Globalization produced asymmetric effects across all quantiles of the conditional distributions in China and Mexico and within the upper quantiles in India. Among the moderating variables, the empirical estimates established asymmetric effects from the influence of remittances, GDP, and technology for China and India. In Mexico, remittances and technology exerted significant negative effects, while GDP produced significant positive effects on income distributions. Thus, if sustainable prosperity must be realized in China and India, it is essential to reconsider the prevailing remittance inflow patterns. Particularly, the state of technology and income distribution patterns must be considered to strike a balance at all times. This step is essential since these factors produced asymmetric effects on income distributions in these countries. Additionally, Mexico should ensure unhindered remittance inflows and more technological penetrations while it readjusts its income distribution patterns to attain SDG 10.