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      Evaluating Global Inequality Using Decomposition Approach

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          Abstract

          Given that there is no recent research on decomposition for global inequality, the aim of this study is to fill the gap in the literature by investigating global inequality with decomposition technique. The data of this study were compiled from the World Bank and decomposition by subgroups was conducted to evaluate the driving forces behind the evolution of inequality. Almost all the countries in the world were included in this study, and the study period spans from 2000 to 2017. The analysis was carried out in several stages to evaluate the issue of North–South divide, as well as the impacts of regional and income subgroups. There are several salient findings derived from this study. First, the results show that there was a gradual decline of international inequality within the study period. Second, there was still a large disparity between the developed and developing countries, and the inequality within the developing countries has aggravated further. Third, geographical location has exerted great impacts on global inequality and East Asia contributed about 40% to the overall decline in international inequality. Fourth, decline in inequality amongst the upper-middle-income countries also contributed substantially to the fall in international inequality. The results derived from this paper can provide pertinent information for the formulation of a comprehensive and coherent strategy in coordinating international efforts and managing inequality while promoting human development under the framework of the newly established Sustainable Development Goals.

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                Author and article information

                Contributors
                Journal
                Front Psychol
                Front Psychol
                Front. Psychol.
                Frontiers in Psychology
                Frontiers Media S.A.
                1664-1078
                26 January 2022
                2021
                : 12
                : 809670
                Affiliations
                [1] 1Hainan College of Economics and Business , Haikou, China
                [2] 2Department of Economics and Finance, Hang Seng University of Hong Kong, Siu Lek Yuen , Hong Kong SAR, China
                [3] 3Department of Geography and Resource Management, The Chinese University of Hong Kong, Shatin , Hong Kong SAR, China
                [4] 4Institute of Future Cities, The Chinese University of Hong Kong, Shatin , Hong Kong SAR, China
                Author notes

                Edited by: Jie Ma, Northumbria University, United Kingdom

                Reviewed by: Rita Yi Man Li, Hong Kong Shue Yan University, Hong Kong SAR, China; Chen Lin, Renmin University of China, China

                *Correspondence: Jing Li, victorli@ 123456cuhk.edu.hk

                This article was submitted to Environmental Psychology, a section of the journal Frontiers in Psychology

                Article
                10.3389/fpsyg.2021.809670
                8826642
                6e337a23-89ae-49f1-8e7d-402c7b4eab67
                Copyright © 2022 Ma, Cheong and Li.

                This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

                History
                : 05 November 2021
                : 06 December 2021
                Page count
                Figures: 5, Tables: 8, Equations: 7, References: 59, Pages: 14, Words: 9306
                Categories
                Psychology
                Original Research

                Clinical Psychology & Psychiatry
                inequality,global,decomposition analysis,theil index,north–south divide

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