Reassessing Capital Inflows and Income Inequality: Global Trends and Future Challenges

25 Aug

Reassessing Capital Inflows and Income Inequality: Global Trends and Future Challenges

Authors- Associate Professor Dr Saurabh Mittal

Abstract- -This paper explores the intricate relationship between capital inflows and income inequality, highlighting the evolving global trends and underlying mechanisms driving their interplay. By analyzing data from both advanced and emerging economies over recent decades, the study identifies significant disparities in the distributional effects of capital flows, emphasizing the role of institutional quality, economic structure, and policy frameworks. The findings suggest that while capital inflows can enhance growth opportunities, they often exacerbate income inequality in the absence of robust redistributive policies and inclusive financial systems. The paper concludes by proposing forward-looking strategies to address these challenges, advocating for targeted fiscal policies, improved financial regulation, and enhanced international cooperation to mitigate adverse distributional impacts while fostering sustainable development.

DOI: /10.61463/ijset.vol.11.issue4.514