TRADE OPENNESS, FINANCIAL OPENNESS AND INCOME INEQUALITY: EMPIRICAL EVIDENCE FOR MIST COUNTRIES

Since the 1980s, income inequality has increased significantly in developed and developing countries. The literature also seen studies that attempt to explain this rising trend inequality. Some explaining increase various ways have focused on economic globalization. Questions how steps taken towards liberalization international trade finance increasing market integration affect been at center of discussions these studies. Uncertainty about direction extent link between globalization persists primarily because conflicting empirical findings literature. This study aims contribute by conducting an analysis MIST countries with data covering 1987-2019. study's findings, which used panel assess data, showed while financial openness reduce for over analyzed period, foreign direct investments do opposite. results effect is greater than openness. It discovered rate per capita no statistically significant impact