Is globalization good for the poor in China?

We decided to closely examine the impact of globalization on the living standards of the poor and on income inequality in China. While the Chinese economy has dramatically increased its openness over the past two decades, income inequality has risen as well. The World Bank estimates that China's Gini coefficient-a measure of the inequality of income distribution in a society (0 being perfect equality and 100 being complete inequality)-rose from 28.8 in 1981 to 38.8 in 1995. From these aggregate statistics, it is tempting to conclude that embracing globalization has contributed to the rise in inequality. But our study suggests a different conclusion, which might be of interest to both globalization enthusiasts and skeptics.