## Chart of the Week: Distribution of Globalization’s Gains

_IMF Blog, May 31, 2018_

## Source details

**Canonical URL:** [Chart of the Week: Distribution of Globalization’s Gains](https://www.imf.org/en/blogs/articles/2018/05/31/chart-of-the-week-distribution-of-globalizations-gains)

## Other formats

- [Markdown version](/en/blogs/articles/2018/05/31/chart-of-the-week-distribution-of-globalizations-gains/index.md)
- [Structured JSON version](/en/blogs/articles/2018/05/31/chart-of-the-week-distribution-of-globalizations-gains/index.json)
- [Bundle manifest](/en/blogs/articles/2018/05/31/chart-of-the-week-distribution-of-globalizations-gains/bundle-manifest.json)

## Bibliographic details
- Authors: The Editors
- Published: May 31, 2018

---

### Study scope and main finding
- IMF Working Paper: The Distribution of Gains from Globalization, by Marina Mendes Tavares and Valentin F. Lang.
- Sample: 147 countries from 1970 to 2014.
- Main finding: Globalization is generally good for economic growth but exhibits diminishing marginal returns — the less integrated a country is into the global economy, the larger the positive impact from additional globalization.

### Effects on country growth (chart interpretation)
- The black line in the chart shows the effects on a country’s five-year growth rate from a one-point increase in economic globalization.
- Low-income countries (example: Ethiopia, shown on the far left) have larger potential growth gains from additional globalization.
- Advanced economies (example: United States, shown on the far right) still gain from globalization, but the expected gains are lower than for poor and emerging market economies.
- The chart indicates levels of globalization and potential growth gains for countries such as India, Brazil, China, and Russia.

### Distribution of income within countries
- The study evaluates how income gains are distributed within countries and finds:
  - Globalization is often associated with widening economic inequality.
  - In many advanced economies, globalization often has little effect on the incomes of the poor.
  - In the average developing economy, both the poor and the wealthy benefit from globalization.

### Policy implications and recommendations
- Government policies can make globalization’s gains more inclusive:
  - Investments in education that raise skill levels.
  - Taxes and transfers that spread benefits more broadly.
- Such policies can help globalization fulfill its promise of generating gains for all.

*Source: IMF blog post “Chart of the Week: Distribution of Globalization’s Gains” (May 31, 2018).*

---


## References

- [https://www.imf.org/wp-content/uploads/2018/05/BLOG-1024x600-women-in-textile-factory-ethiopia-Kay-Neitfeld-Newscom-dpaphotostwo874233.jpg](https://www.imf.org/wp-content/uploads/2018/05/BLOG-1024x600-women-in-textile-factory-ethiopia-Kay-Neitfeld-Newscom-dpaphotostwo874233.jpg)
- [study](https://www.imf.org/en/Publications/WP/Issues/2018/03/13/The-Distribution-of-Gains-from-Globalization-45722)
- [Marina Mendes Tavares](https://www.imf.org/en/Publications/Publications-By-Author?author=Marina++Mendes+Tavares&name=Marina++Mendes+Tavares)
- [Valentin F. Lang](https://www.imf.org/en/Publications/Publications-By-Author?author=Valentin+F.+Lang&name=Valentin+F.+Lang)
- [https://www.imf.org/wp-content/uploads/2018/05/eng-may-23-distribution-cotw-5.png](https://www.imf.org/wp-content/uploads/2018/05/eng-may-23-distribution-cotw-5.png)

_Source: https://www.imf.org/en/blogs/articles/2018/05/31/chart-of-the-week-distribution-of-globalizations-gains_