Vivek's Commentary

Global inequality Milanovic in his paper titled Global inequality: from class to location, from proletarians to migrants discusses the important points related to global inequality. In this article, I am going to discuss more on global inequality or inequality among countries by constructing inequality indicators. Let’s discuss.  The movement of capital across countries is important not only for individual countries but also for the global distribution of the capital. Theoretically, capital must be transferred from the rich country to the poor country as the marginal productivity of the capital must be higher in the poor countries but doesn’t happen. The capital transfers from rich countries to the poor countries are offset by the increase in the poor countries’ invest abroad (Lucas, R. E. (1990)). Broadly speaking, there is no global convergence of the income level. The poor countries are unable to catch up. The neoclassical suggests that the poor countries will grow faster than t