Analysis of the Causes of long-Term Changes in Economic Inequality in the Global Economy

Abstract

The author examines long-term changes in economic inequality in the global economy. The aim of the article is to update, analyze and systematize the long-term causes of changes in economic inequality in the global economy and identify its country specifics. The author used the methods of analysis and synthesis, systematization, classification and categorization of information from various scientific and statistical sources and databases. To illustrate the trends in economic inequality, the author applied the indicator of the share of national income among different groups of the population. The study revealed the cyclical nature of economic inequality in accordance with Kondratieff innovation waves lasting 50-60 years. Based on the data analysis of economic inequality for the period 1900-2018, the author concluded that technological progress is the priority factor in changing economic inequality. Together with the country specifics of the financial mechanism for redistributing income and wealth and various regimes of international cooperation and trade, it affects the changes in cross-country and domestic economic inequality. Understanding the nature of changes in inequality will allow for effective long-term strategies for economic development and the corresponding state regulation policy in the context of faster digitalization and robotization of the global economy.

Keywords

• economic inequality
• poverty
• economic growth
• kondratieff innovation cycle
• economic cycles
• taxes
• government regulation