Abstract:

This paper presents a model of cross-country regressions for the economy of EAEC members such as the Republic of Kazakhstan, Belarus Republic and the Russian Federation. Parameters of the model  were evaluated. The authors presented the results of research, during which they conducted econometric cross-country regressions using the method of least squares estimates to measure the impact on inequality in the distribution of incomes of EAEC member. The influence of economic growth, free trade and foreign direct investment and government expenditure on education has been proven. Globalization affects poverty through growth in income inequality. At the same time, the economic growth and free trade reduces inequality in income distribution and the level of absolute poverty. The growth of foreign direct investment on the contrary, leads to the growth of inequality in income distribution and the level of absolute poverty.