Politics versus Science: A Response to Anders Lundkvist

Abstract

The article by Lundkvist surveys a number of useful research contributions related to globalisation and world income distribution. Lundkvist argues, however, that our own results on world income inequality have methodological weaknesses, and have been invalidated by later research showing that the so-called Purchasing Power Parity (PPP) data, i.e., income data adjusted for price differences across countries, are biased. Data that are adjusted for this bias according to a specific method, suggest that international income inequality has increased slightly during 1980–93, instead of falling—as our analysis suggests. We argue that Lundkvist's critique of our results is partly based on misunderstandings (related to the impact of the former Soviet Union), and that more research has to be undertaken before PPP data can be dismissed as invalid. Moreover, Lundkvist accuses other researchers of shaping their results in accordance with their political perceptions about globalisation, and by that he trespasses the line that delineates a serious scholarly discussion.

Keywords:

• globalisation
• inequality
• income distribution