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.

scholarly journals Financial Sector Transformation and Income Inequality-An Empirical Analysis

e-Finanse ◽  
2016 ◽  
Vol 12 (2) ◽  
pp. 36-48
Author(s):  
Hanna K. Szymborska
Keyword(s):  
Income Inequality ◽  
Stock Market ◽  
Empirical Analysis ◽  
Econometric Model ◽  
Market Value ◽  
Financial Sector ◽  
Oecd Countries ◽  
Private Credit ◽  
The Relationship ◽  
Income Concentration

Abstract This paper examines the relationship between financial sector transformation and income inequality. We construct an econometric model of income concentration for a panel of 16 OECD countries in the years 1995-2009. From our study, financial sector transformation, measured individually by three indicators (GDP share of stock market value traded, bank income and private credit), emerges as a nexus of complex and interconnected phenomena, which are strongly associated with the concentration of income at the top of the distribution.

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.

scholarly journals Economic Growth and Income Inequality in Developing Countries

2015 ◽  
Vol 9 (6) ◽  
pp. 79-82 ◽  
Author(s):  
Morteza Nemati ◽  
Ghasem Raisi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Income Inequality ◽  
Income Distribution ◽  
Economic System ◽  
Development Strategy ◽  
Low Income ◽  
Poverty Eradication ◽  
The Relationship ◽  
Selection Of

Nowadays, improvement in income distribution and poverty eradication and hence low inequality are served as the main objectives of economic and social development strategy even prior than primary tasks of governments. to manifest importance of income distribution, some economists adopt income inequality and income distribution in society as criteria for economic system of the community, although these criteria and measures are theoretical for the economic system and this varies from the perspective of different people, however, it denotes on  importance of income distribution among individuals. The main objective of this study was to evaluate the effect of economic growth on income inequality in the selection of low-income developing countries.To this end, using panel data and data for 28 developing countries over the period 1990-2010 the relationship between GDP and the Gini coefficient was examined. The results indicate that as per hypothesis Kuznets in the early stages of growth, income inequality increases and then it declines in later stage.

scholarly journals How do Poverty and Income Inequality affect Economic Growth in Developing Countries?

2021 ◽  
Vol 4 (2) ◽  
pp. 547-558
Author(s):  
Hamza Saleem ◽  
Fatima Farooq ◽  
Muhammad Aurmaghan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Development Indicators ◽  
The Relationship ◽  
Positive Effect ◽  
World Development

The major objective of this research is to examine the relationship between poverty, income inequality and economic growth from some selected developing countries. This study uses panel data for the period of 2002-2015. All the data is taken from world development indicators (WDI). To find out the results, we have used Hausman test an econometrics technique for panel data in this research. The results of the study indicate that poverty and income inequality have a negative impact on economic growth on the other hand Gross capital formation, labor force, total population and government consumption and expenditure have a positive impact on economic growth. The result tells us that changes in these variables have a significant and positive effect on the dependent variable. To achieve the goal of economic growth developing countries should reduce poverty and take meaningful steps to overcome the problem of inequality in the society which can be very helpful in achieving the goal of economic growth.

Structural Change, Economic Development, and the Labour Market

2021 ◽  
pp. 577-595
Author(s):  
Önder Nomaler ◽  
Bart Verspagen ◽  
Adriaan van Zon
Keyword(s):  
Economic Development ◽  
Structural Change ◽  
Income Inequality ◽  
Income Distribution ◽  
Technological Change ◽  
Labour Market ◽  
Skill Premium ◽  
Skilled Labour ◽  
The Relationship ◽  
Specific Country

This chapter addresses the relationship between structural change and the income distribution. It raises the question of whether structural change increases or decreases income inequality. The chapter presents a multi-sectoral model in the so-called canonical modelling tradition. In this model the distributional outcomes depend on the mix of the labour supply in different technology classes and skill biases in technological change. Whether structural change has an effect depends on the specific country. When it does have an effect, it mainly benefits high-skilled labour. The skill premium for high-skilled labour thus contributes to increased income inequality. Both the relative supply of skills and skill-based technological change tend to increase income inequality, though not in all countries.

Financial sector development and income inequality in South Africa

2017 ◽  
Vol 8 (4) ◽  
pp. 420-432 ◽  
Author(s):  
Forget Mingiri Kapingura
Keyword(s):  
South Africa ◽  
Income Inequality ◽  
Financial Development ◽  
Empirical Studies ◽  
Financial Sector ◽  
Financial Inclusion ◽  
External Trade ◽  
Bounds Testing ◽  
Content Type ◽  
Financial Sector Development

Purpose The purpose of this paper is to examine the relationship between financial sector development and inequality in South Africa for the period from 1990 to 2012. Unlike previous studies, the study examines the role of both the broad measure of financial sector development (Bank credit to the private sector) and a measure of financial inclusion (ATMs). Design/methodology/approach Utilising quarterly data, the autoregressive distributed lag bounds testing model approach to cointegration test was estimated. The approach was preferred due to its compatibility with data of different orders and flexibility. Findings The findings indicate that financial development, especially when it is inclusive reduces the level of inequality in South Africa both in the short- and long-run. The results also highlighted that economic growth, external trade activities and government activities have played a very important role in reducing inequality in South Africa. On the other hand the empirical results also highlight that increasing inflation is regressive on inequality in South Africa. Research limitations/implications The results from the study imply that financial development on its own though important may not benefit the disadvantaged groups such as the poor and the rural community until it is inclusive. It is important to note that the study was carried out on the premise that inequality plays a very important role in exacerbating poverty levels in South Africa. Practical implications The paper highlights another avenue which authorities can pursue to reduce the level of inequality in the country. Social implications The paper documents the importance of financial inclusion in reducing the level of inequality in South Africa rather than advocating for financial sector development only. Originality/value The paper makes a contribution through analysing the effect of financial inclusion on income inequality rather than broad financial sector development which is common to the majority of the available empirical studies.

Does Environmental Consciousness Set from Constructivism? - Empirical Analysis Based on 816 Samples from China

2012 ◽  
Vol 616-618 ◽  
pp. 1620-1626
Author(s):  
Qiu Zhong ◽  
Guo Qing Shi
Keyword(s):  
Empirical Research ◽  
Empirical Analysis ◽  
Science And Technology ◽  
Environmental Sociology ◽  
Research Data ◽  
Environmental Consciousness ◽  
The Relationship

Constructivism theory is one of most important theory in arena of environmental sociology. Compared by three groups in China, this article analyzes the relationship between environmental consciousness and constructivism theory based on empirical research. Data found significant on both Faith in Science and Technology and Environment Knowledge while three groups demonstrate differently. Research also expresses the transformation from rural to urban.

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