Available empirical evidence suggests that globalisation in recent years have had a significant positive impact onvarious sectors of most economies; however, significant evidence also exists suggesting that this economicprocess has also accentuated poverty and worsened income distribution in parts of some economies. This studyexamines the effects of foreign direct investment, trade openness and foreign remittance on income inequality inGhana. The paper applied the vector error correction model in examining the effect of FDI inflow, foreignremittance and trade openness and income inequality in Ghana. The result indicates Foreign Remittance, FDI,Trade Openness and Gini index, are integrated of order one. Additionally, Johansen’s test for cointegrationsuggest a long-run relationship between the Gini coefficient (income distribution) and examined independentvariables. The study also found out that foreign remittance has a significant negative relationship with Ghana’sincome inequality and FDI inflows have no significant impact on Ghana’s income inequality.
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