Revisiting trends in the global distribution of income

Is there any relationship between the inequality between nations and the world political order?

Abstract

A database built using Penn World Tables 6.2 allows the analysis of income distribution among countries for the period 1970 – 2003. Data analysis contradicts the ‘convergence hypothesis’ and shows a different behavior between richest and poorest countries compared to upper middle class and lower middle class countries. Data are related with world affairs of the period. The emergence of China as a returning world power helps to combat inequality, while the absolute predominance of the United States during the 1990 to 2000 period increased the difference between poor and rich.