scholarly journals Is There a Reverse U-Shaped Relation between Financial Development and Income Distribution? Comparison between Developed Countries and Transforming Countries

2015 ◽  
Vol 03 (03) ◽  
pp. 201-209 ◽  
Author(s):  
Zhaoying Liu ◽  
Qian Wang
Keyword(s):  
Income Distribution ◽  
Financial Development ◽  
Developed Countries

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 Does Foreign Aid Promote Financial Development in the Economic Community of West African States (ECOWAS)?

2020 ◽  
Vol 5 (2) ◽  
pp. p39
Author(s):  
W. Jean Marie Kébré
Keyword(s):  
Foreign Aid ◽  
Financial Development ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
West African ◽  
International Financial Institutions ◽  
Economic Community ◽  
Development Indicators ◽  
Negative Effect

This article analyzes relationship between foreign aid and financial development in ECOWAS countries. These countries receive aid flows from developed countries and from international financial institutions. The article’s idea is to evaluate this aid effects on financial development and to assess role of governance on this relationship. The analysis uses panel data from ECOWAS countries over the period 1984-2016. The estimations’ results, based on Dynamic ordinary least squares (DOLS) estimator, show that aid is negatively and significantly linked with financial development indicators used. These results suggest that aid is an obstacle to financial development. Governance role tests do not change the negative effect of aid on financial development. However, the magnitude of the negative effect of interactive variables (with governance variables) is less than aid direct effect on financial development. These results suggest that an additional effort to improve governance in these countries would reduce aid negative effect on financial development, or even reverse this effect.

scholarly journals Financial sector development convergence in Africa: Evidence from bank- and market-based measures

2019 ◽  
Vol 8 (4) ◽  
pp. 166 ◽  
Author(s):  
Yakubu Awudu Sare ◽  
Eric Evans Osei Opoku ◽  
Muazu Ibrahim ◽  
Isaac Koomson
Keyword(s):  
Financial Markets ◽  
Financial Development ◽  
Generalized Method Of Moments ◽  
Financial Sector ◽  
Developed Countries ◽  
African Countries ◽  
Development Indicators ◽  
Developed Economies ◽  
Financial Sector Development ◽  
Catch Up

In this paper, we employ data from 46 African countries over the period 1980–2014 to examine financial sector development convergence, using bank- and market-based measures of financial development. Within the framework of the generalized method of moments (GMM), we present evidence that both the bank– and market–based financial sector development in Africa diverge over time. However, we find strong evidence of financial development divergence when using bank-based financial sector development indicators whereas this evidence is weaker for market-based indicators. Given the divergence in the level of finance, the gap between countries with underdeveloped and well–developed financial markets will continue to widen as financially less developed countries do not appear to catch-up with the financially more developed economies.  Keywords: Financial development; divergence, convergence, AfricaJEL Classification: F15, F36, G01, O55

scholarly journals Ukrainian Middle Class in the New Millennium: Trends and Prospects

2020 ◽  
pp. 71-92
Author(s):  
L. M. CHERENKO
Keyword(s):  
Middle Class ◽  
Income Distribution ◽  
Developed Countries ◽  
Income Group ◽  
Middle Income ◽  
Global Trends ◽  
The Past ◽  
General Decline ◽  
Middle Income Group ◽  
The Impact

Ukrainian society has undergone various transformations over the past twenty years. Adverse economic conditions and ineffi cient income distribution policies deterred the for mation of a large middle-income group, which should become the basis of the middle class. Developed countries, which in the last century reached the peak growth of the number and importance of the middle class, today indicate the process of “blurring” of this social group against the background of growing inequality. Against the background of global trends, Ukraine is facing a double blow — the income distribution, which is already shift ed towards low incomes, leaves no chance for positive changes in the social structure of society. Th e a im of the article is to establish trends in the formation of the middle-income group in Ukraine over a twenty-year period and assess the prospects for the formation of the middle class in the future, taking into account today’s Ukrainian realities and global trends. Th e novelty of the work is the analysis of a long series of dynamics to establish the trends of the middleincome group according to the classical approaches for international comparisons and according to the purely Ukrainian approach. In addition, micromodeling of incomes (expenditures) for 2020, taking into account the macroeconomic situation, allows us to assess the impact of the coronavirus crisis and quarantine measures on changes in the number of middle-income groups and the prospects of the middle class in Ukraine. Within the article classical methods of analysis of long series of data, in particular, the index method (basic and chain indices) are used for studying the dynamic changes in the formation of midd leincome groups. In order to assess the size of the middle-income group in 2020, the method of micromodeling is used: the 2020 microdata is modeled on the basis of the 2019 microdata (microfi le of the household living condition survey) and macro forecast data for the current year. Analysis of the dynamics of incomes, expenditures and various property character istics of the middle-income group over the past twenty years does not show positive trends. Quite the contrary, in Ukraine there is an impact of the global trend of “blurring” of the middle-income group as the basis of the middle class, with its specifi c features in consumer and investment behavior. Th e events of the last year also do not inspire optimism — by the end of the year the general decline in living standards and the growth of poverty is expected. In such conditions, the main burden of the crisis is expected to fall on the middle-income group. Th e article also considers the problem of the importance of forming the middle class for society and the feasibility of forming politics to this goal.

FDI and Global Economic Growth: Insights from Developed and Developing Nations

2018 ◽  
Vol 8 (1) ◽  
pp. 344
Author(s):  
Tarika Sikarwar ◽  
Pallavi Bhadoria ◽  
Deepak Khandelwal
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Economic Condition ◽  
Good Condition ◽  
Developed Countries ◽  
Point Of View ◽  
Economic Point ◽  
Negative Effect ◽  
Global Economic Growth ◽  
The Relationship

With the integration of FDI and financial development through the global economic growth and its implication .the exploration of financial development interdependency of FDI has become profoundly important among different countries like developed countries and developing countries. In these different countries they used various relationships for that they found the result like if the result is positive result then there is good economic condition and if there is negative effect then there is not good condition in economic point of view. The aim of the study is to examine the relationship between FDI and economic development of different countries under study.

scholarly journals Financial Development and Bioenergy Consumption in the EU28 Region: Evidence from Panel Auto-Regressive Distributed Lag Bound Approach

Resources ◽  
2019 ◽  
Vol 8 (1) ◽  
pp. 44 ◽  
Author(s):  
Mohd Alsaleh ◽  
A. Abdul-Rahim
Keyword(s):  
Energy Consumption ◽  
Financial Development ◽  
Financial Market ◽  
Positive Impact ◽  
Developed Countries ◽  
Positive Influence ◽  
The European Union ◽  
Causality Analysis ◽  
Distributed Lag ◽  
Statistical Level

This paper investigates the relationship between financial development and bio-energy consumption in the European Union (EU28) countries for the period from 1990 to 2013 through the panel autoregressive distributed lag (ARDL) approach and causality analysis. The empirical results show that financial development shows a significant positive impact, at a 1% statistical level, on bio-energy consumption for the EU28 during the studied period. In developing countries, the financial market indicator affects bio-energy consumption outgrowth positively and significantly at a 1% statistical level. For developed countries, there is a positive influence of financial institutions and financial market indicators on bio-energy consumption growth at the 1% and 10% levels, respectively. The study concludes that there is a significant relationship between the consumption of bio-energy and financial development factors. The study provides recommendations that are useful when formulating policy related to energy consumption and the promotion of bio-energy consumption. Financial development and economic outgrowth show a significant influence on the outgrowth of bio-energy consumption at a 1% statistical level.

Sign in / Sign up

Export Citation Format

Share Document