Study on the Impact of Cross-border Capital Flows on Income Inequality

The impact of economic globalization on income inequality has always been the focus of development economics research. The process of globalization in the past few decades shows that economic globalization is mainly the globalization of commodity trade and the globalization of capital flow. This paper mainly studies the impact of cross-border capital flows on income inequality, using cross-border panel data from 109 countries or regions from 1973 to 2015, and using the systematic GMM method to study the impact of cross-border capital flows on income inequality under different financial depths, and finally put forward policy recommendations to improve income inequality.