The effects of financial development on income inequality and poverty
AbstractThis paper examines the effects of financial development on income inequality and poverty. The results of both cross-country and panel data regressions suggest that inequality and poverty are reduced not only through enhanced loan markets, but also through more developed stock markets. We show that ethnic diversity and the distribution of land are significant and robust determinants of both income inequality and poverty. Finally, we find evidence that government spending leads to a reduction in income inequality in high income countries. In low income countries, however, we find no significant effect. --
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Bibliographic InfoPaper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Hannover 2010 with number 25.
Date of creation: 2010
Date of revision:
Financial development; inequality; poverty;
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- Demirguc-Kunt, Asli & Levine, Ross, 2008. "Finance and economic opportunity," Policy Research Working Paper Series 4468, The World Bank.
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- Muhammad Shahbaz, 2013. "Financial Development, Economics Growth, Income Inequality Nexus: A Case Study of Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), The Economics and Social Development Organization (TESDO), vol. 1(3), pages 24-47, March.
- Muhammad Shahbaz & Faridul Islam, 2011.
"Financial Development And Income Inequality In Pakistan: An Application Of Ardl Approach,"
Journal of Economic Development, Chung-Ang Unviersity, Department of Economics,
Chung-Ang Unviersity, Department of Economics, vol. 36(1), pages 35-58, March.
- Shahbaz, Muhammad & Islam, Faridul, 2011. "Financial development and income inequality in Pakistan: An application of ARDL approach," MPRA Paper 28222, University Library of Munich, Germany.
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