In one of the systematic studies, Reuveny and Li (2003) explored the relationship between economic openness, democracy and inequality (Reuveny & Li, 2003). Using a country decade as a unit of analysis and a sample of 69 countries, and timeframe from 1960 to 1996, the authors find that “trade reduce income inequality, foreign direct investments increase income inequality, and financial capital does not affect income inequality” (Reuveny & Li, 2003, p. 575). Reuveny and Li’s research reveal that “effect of trade openness on income inequality is negative and statistically significant at the 5% level for all the samples, indicating that trade openness reduces income inequality” (Reuveny & Li, 2003, p. 588). Beer and Boswell (2001) also studied the effects of economic globalization on inequality (Beer & Boswell, 2001). This research stipulates the underlying circumstances under which transnational corporate infiltration and other global influences effect variations in income distribution domestically. The finding is a strong indication that countries extreme reliant on “foreign capital experience high and worsening income inequality” (Beer & Boswell, 2001). As Heinemann (2000) shows, more globalized countries have lower increases in government outlays and taxes (Heinemann & Friedrich,
In one of the systematic studies, Reuveny and Li (2003) explored the relationship between economic openness, democracy and inequality (Reuveny & Li, 2003). Using a country decade as a unit of analysis and a sample of 69 countries, and timeframe from 1960 to 1996, the authors find that “trade reduce income inequality, foreign direct investments increase income inequality, and financial capital does not affect income inequality” (Reuveny & Li, 2003, p. 575). Reuveny and Li’s research reveal that “effect of trade openness on income inequality is negative and statistically significant at the 5% level for all the samples, indicating that trade openness reduces income inequality” (Reuveny & Li, 2003, p. 588). Beer and Boswell (2001) also studied the effects of economic globalization on inequality (Beer & Boswell, 2001). This research stipulates the underlying circumstances under which transnational corporate infiltration and other global influences effect variations in income distribution domestically. The finding is a strong indication that countries extreme reliant on “foreign capital experience high and worsening income inequality” (Beer & Boswell, 2001). As Heinemann (2000) shows, more globalized countries have lower increases in government outlays and taxes (Heinemann & Friedrich,