Abstract
This dissertation examines how trade openness, as determined by a globalisation index, affects
unequal distribution of income in the BRICS Plus countries between 1996 and 2023, using a
fixed effects (FEF) model. The study also analyses the role of institutions in mediating how
openness to trade affects income inequality in BRICS Plus countries. The findings indicate that
income inequality in the BRICS Plus countries is negatively impacted by trade openness.
However, the interaction on trade openness and institutional indicators show a more negative
coefficient. This shows how the relationship between trade openness and income inequality in
the BRICS Plus countries is mediated by institutional quality. This study also looked at whether
the outcome changes if China is not included in the sample. According to the findings,
excluding China from the estimation renders every other variable—aside from government
spending—insignificant. Because of its vast population, unique trade policies and government
involvement, China differs greatly from the other BRICS Plus countries, which is why it was
left out of the first analysis. Overall, irrespective of whether China is included or excluded from
the sample, the findings of the interaction term between openness to trade and institutions in
both estimations indicate that institutional quality significantly mediates the effect of trade
openness on income inequality in BRICS Plus countries. According to the findings of this
study, this dissertation suggests the policymakers of BRICS Plus countries should prioritise
promoting fairness and support policies that promote a balanced distribution of economic
advantages.