Financial Development and Rural-Urban Inequality: Evidence from China
AbstractThis paper assesses the impacts of financial development on rural-urban inequality with the panel data of China's 31 provinces. We find that credit service would deteriorate income distribution if it is only available to the rich people. But when the credit coverage becomes wider, finance may help to reduce income inequality. In addition, finance plays different roles at different stages of economic development. At the starting stage of economic growth, when physical capital is the engine of economic development, financial development could reduce income inequality. But in a mature economy, where the return to human capital is much higher, financial development may increase income inequality.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 32 (2012)
Issue (Month): 2 ()
Contact details of provider:
Financial Development; Rural-urban inequality; Income Inequality; Credit;
Find related papers by JEL classification:
- G1 - Financial Economics - - General Financial Markets
- O2 - Economic Development, Technological Change, and Growth - - Development Planning and Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Damiaan Persyn & Joakim Westerlund, 2008. "Error-correction–based cointegration tests for panel data," Stata Journal, StataCorp LP, vol. 8(2), pages 232-241, June.
- Ross Levine & Alexey Levkov & Yona Rubinstein, 2008.
"Racial Discrimination and Competition,"
NBER Working Papers
14273, National Bureau of Economic Research, Inc.
- Oded Galor & Omer Moav, 2004.
"From Physical to Human Capital Accumulation: Inequality and the Process of Development,"
GE, Growth, Math methods
- Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," Review of Economic Studies, Oxford University Press, vol. 71(4), pages 1001-1026.
- Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," Review of Economic Studies, Wiley Blackwell, vol. 71(4), pages 1001-1026, October.
- Galor, Oded & Moav, Omer, 1999. "From Physical to Human Capital Accumulation: Inequality in the Process of Development," CEPR Discussion Papers 2307, C.E.P.R. Discussion Papers.
- Oded Galor & Omer Moav, 1999. "From Physical to Human Capital Accumulation: Inequality in the Process of Development," Working Papers 99-27, Brown University, Department of Economics.
- William Kerr & Ramana Nanda, 2009.
"Financing Constraints and Entrepreneurship,"
NBER Working Papers
15498, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley).
If references are entirely missing, you can add them using this form.