Financial Development and Rural-Urban Inequality: Evidence from China
This 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.
Volume (Year): 32 (2012)
Issue (Month): 2 ()
|Contact details of provider:|| |
References listed on IDEAS
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.:
- 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," GE, Growth, Math methods 0410005, EconWPA.
- 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 R. Kerr & Ramana Nanda, 2009.
"Financing Constraints and Entrepreneurship,"
Harvard Business School Working Papers
10-013, Harvard Business School.
- Ross Levine & Alexey Levkov & Yona Rubinstein, 2011.
"Racial Discrimination and Competition,"
CEP Discussion Papers
dp1069, Centre for Economic Performance, LSE.
- Salvador Perez-Moreno, 2011. "Financial development and poverty in developing countries: a causal analysis," Empirical Economics, Springer, vol. 41(1), pages 57-80, August.
- Damiaan Persyn & Joakim Westerlund, 2008. "Error-correction–based cointegration tests for panel data," Stata Journal, StataCorp LP, vol. 8(2), pages 232-241, June.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-12-00129. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.