@article{article_963467, title={Addressing the Asymmetric Causality Between Technological Progress, Economic Globalization, and Income Distribution: The Application of Hatemi-J Approach}, journal={International Journal of Entrepreneurship and Management Inquiries}, volume={5}, pages={35–55}, year={2021}, author={Özdemir, Onur}, keywords={Income Distribution, Labor Share of Income, Technological Progress, Economic Globalization, Hatemi-J Asymmetric Causality Test}, abstract={The existing literature on distributional concerns has been substantially pointed out the crucial importance of two major factors in the last four decades: (i) technological progress and (ii) economic globalization. However, instead of their negative side-effects on income distribution, most of the current studies have put forward the arguments that each indicator should be spread in the economic relations. Starting from that point of view, this paper investigates the causal relationship from technological progress and economic growth to income distribution (proxied by labor share of income) by implementing the Hatemi-J asymmetric causality test, which divides positive and negative shocks on the benchmark variables, across the G-7 economies over the 1970-2018 period. The empirical findings show that there are large negative effects of technological progress and economic globalization on labor’s share in the presence of shocks, which also contradicts with the mainstream wisdom.}, number={8}, publisher={Himmet KARADAL}