scholarly journals A Closer Look at Financial Development and Income Distribution

2010 ◽  
Author(s):  
Céline Gimet ◽  
Thomas Lagoarde-Segot
Keyword(s):  
Income Distribution ◽  
Financial Development

MONETARY POLICY, FINANCIAL DEVELOPMENT AND INCOME INEQUALITY IN DEVELOPING COUNTRIES

2020 ◽  
pp. 1-31
Author(s):  
MANSOR H. IBRAHIM
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
Income Inequality ◽  
Income Distribution ◽  
Financial Development ◽  
Financial Stability ◽  
Developed Countries ◽  
Financial Indicators ◽  
Negative Impacts ◽  
Effect Of Monetary Policy

The paper empirically examines the redistributive effect of monetary policy and assesses whether financial development plays any role in shaping monetary policy — inequality relations in developing countries. We uncover evidence supporting the redistributive consequences of monetary policy especially in more financially developed countries. We further note that while financial development raises income inequality in countries with low financial development, it leads to a reduction in income inequality in high financial development countries. As a side result, economic growth contributes favorably to income equalization in these countries. Finally, such financial indicators as financial access, financial efficiency and financial stability also condition the impacts of monetary policy on income distribution, although they are independently insignificant. Our results hint that the improvements in information and in efficiency rather than depth and access that would attenuate the negative impacts of contractionary monetary policy on income distribution.

scholarly journals Research on Property Income Inequality Effect of Fiscal Finance

Economies ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 50 ◽  
Author(s):  
Xiaozhun Peng ◽  
Hongyou Lu
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Financial Development ◽  
National Policy ◽  
Chinese Family ◽  
Inequality Decomposition ◽  
Significant Difference ◽  
Property Income ◽  
Fiscal Expenditure ◽  
The Impact

“Creating conditions for more people to have property income” has become a national policy after the 17th National Congress of the Communist Party of China. Based on the micro survey data from Chinese Family Panel Studies (CFPS) in 2010, 2012, 2014, 2016 and the macro panel data at the provincial level, a logarithmic linear equation was built to estimate the impact of micro and macro factors on property income. Furthermore, the contribution of fiscal expenditure and financial development on property income equality can be recognized using the regression-based inequality decomposition method. This research revealed that fiscal expenditure improves residents’ property income and slightly reduces the inequality of property income distribution. With respect to financial development, it improves residents’ property income but aggravates the inequality of property income distribution. However, there is a significant difference between the different regions. In eastern and central regions, inequality of property income distribution greatly benefits from fiscal expenditure, while in northwest regions, fiscal expenditure makes property income inequality even worse. Therefore, the focus of financial sustainable development is to reduce property income inequality through the establishment of an effective government and the improvement of the rule of laws.

scholarly journals Impact of Financial Development on Income Inequality in Vietnam

2016 ◽  
Vol 23 (02) ◽  
pp. 22-37
Author(s):  
Hoi Le Quoc ◽  
Hoi Chu Minh
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Financial Development ◽  
Financial Market ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Policy Recommendations ◽  
Present Evidence ◽  
Provincial Level ◽  
Market Expansion

Utilizing the approach of constructing indicators treated as representatives for degree of financial development at provincial level of Vietnam over the 2002–2012 period along with Generalized Method of Moments (GMM), this study inspects the nexus between financial development and income inequality. To a certain extent the empirical findings present evidence to show that financial market expansion in Vietnam widens income inequality, through which some policy recommendations are provided with regard to reducing the inequality of income distribution across the society.

scholarly journals A closer look at financial development and income distribution

2011 ◽  
Vol 35 (7) ◽  
pp. 1698-1713 ◽  
Author(s):  
Céline Gimet ◽  
Thomas Lagoarde-Segot
Keyword(s):  
Income Distribution ◽  
Financial Development

scholarly journals Financial development and income inequality

2020 ◽  
Vol 7 (54) ◽  
pp. 84-100
Author(s):  
Ewa Weychert
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Financial Development ◽  
Added Value ◽  
Empirical Literature ◽  
Financial Variables ◽  
Short Run ◽  
Fixed Panel ◽  
The Impact ◽  
The Relationship

AbstractThis paper analyses the influence of financial development on income inequality. Throughout this work, one may find the overview of theoretical and empirical literature as well as the empirical model using fixed panel data method. This research paper tries to disentangle the opposing views on the relationship between finance and income distribution, by evaluating the impact of the different dimensions of financial development on the level of income inequality. The important added value of this research is the usage of quintiles of income distribution as a dependent variable that may help to recognise the effect of financial development on the poorest and richest. Another novelty of the paper is the consideration of the effects of financial variables on Gini coefficient in the long and short run. The main results of the analysis using dataset from 2003 to 2014 indicate that financial access decreases income inequality.

Financial Development and Income Inequality in Vietnam: An Empirical Analysis

2012 ◽  
pp. 5-25 ◽  
Author(s):  
Hoi Chu Minh ◽  
Hoi Le Quoc
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Empirical Research ◽  
Empirical Analysis ◽  
Financial Development ◽  
Positive Impact ◽  
Financial Sector ◽  
Joint Effects ◽  
The Relationship

The pattern of income distribution can be influenced by financial evelopment. Using provincial data, this paper empirically investigates the relationship between financial development and income inequality in Vietnam from 2002 to 2008. The results show that financial development has a positive impact on reducing income inequality, which is consistent with the bulk of theoretical and empirical research. The results also confirms that financial development when it interacts with education has joint-effects on reducing income inequality. We also find no evidence supporting the Greenwood-Jovanovic hypothesis of an inverted U-shaped relationship between the financial sector of development and inequality.

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