The long term effects of globalization on income inequality, population growth, and economic development

Population growth, inequality and economic development are among the most pressing social issues confronting us today. This research argues that these national problems are embedded within the context of increasingly complex multi-dimensional international networks, commonly referred to as globalization. Using cross-national comparisons among 88 less developed countries, I construct a series of structural equation models to estimate the effects of two aspects of globalization, foreign capital dependence and trade openness, on these three domestic concerns between 1980 and 1997. I find that foreign capital dependence has a positive effect on income inequality, raises fertility, rates, accelerates population growth and retards economic development. Trade openness, in contrast, has long-term positive effects on economic development.