This paper examines the distributional effects of globalization in developing countries, focusing on how it has impacted income inequality. The authors discuss conceptual issues related to measuring globalization and inequality, present empirical evidence on the evolution of globalization and inequality in several developing countries during the 1980s and 1990s, and explore the channels through which globalization may have affected inequality. They find that while globalization has generally increased inequality in these countries, the impact varies across countries and over time. The paper highlights the importance of trade liberalization, capital flows, foreign direct investment (FDI), and exchange rate fluctuations in shaping these changes. It also discusses the challenges in measuring globalization and inequality, including data availability and measurement errors. The authors conclude by emphasizing the need for careful policy interventions to address the potentially adverse distributional effects of globalization.This paper examines the distributional effects of globalization in developing countries, focusing on how it has impacted income inequality. The authors discuss conceptual issues related to measuring globalization and inequality, present empirical evidence on the evolution of globalization and inequality in several developing countries during the 1980s and 1990s, and explore the channels through which globalization may have affected inequality. They find that while globalization has generally increased inequality in these countries, the impact varies across countries and over time. The paper highlights the importance of trade liberalization, capital flows, foreign direct investment (FDI), and exchange rate fluctuations in shaping these changes. It also discusses the challenges in measuring globalization and inequality, including data availability and measurement errors. The authors conclude by emphasizing the need for careful policy interventions to address the potentially adverse distributional effects of globalization.