ABSTRACT
Two phenomena regarding the global economy have received widespread academic and popular attention in recent years. The first is a long-run increase in international inequality and, more specifically, the gap between the rich and poor countries. The second is the process of globalization and the closer integration between rich and poor countries. This chapter is concerned with the question whether these two phenomena are related in the sense that the high and increasing level of interaction between rich and poor countries (which we will refer to as the North and the South) contributes toward exacerbating global disparities.
