The Impact of Globalization on Income Distribution of Oil and Non-oil Developing Countries

The effect of globalization on income distribution is one of the most controversial issues among the pros and cons of globalization and there is the growing amount of research has been done in this respect in the world.Therefore, considering the importance of this issue, this paper attempts to examine the impact of globalization on income distribution using data from a panel of 119 developing countries in both oil and non-oil developing countries over the period 2000-2013 based the generalized method of moments (GMM) to test the empirical literature on the subject.Trade openness index as an indicator of globalization and the Gini index of income distribution used in this study.In this study, the variables of economic growth, democracy, inflation, unemployment, Education and Population growth rate are used as control variables in the model.The results of this study show that globalization has indirect relation with income inequality in oil countries and its increase improves income distribution.While trade openness increase the income inequality in non-oil countries.