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Stock market and inequality distributions – Evidence from the BRICS and G7 countries

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  • Dang, Dong Quang
  • Wu, Weiou
  • Korkos, Ioannis

Abstract

By examining the effects of three stock market indicators (market accessibility, efficiency, and stability) on income and wealth inequality in the BRICS and G7 countries, this study enriches lacking literature on income and wealth inequality, particularly for the BRICS countries. We apply the Autoregressive Distributed Lag–Mixed Data Sampling (ADL-MIDAS) model. We find that only enhancements in market stability reduce income inequality in the BRICS and G7 countries. Additionally, we find that while expansions of market accessibility contribute to narrowing wealth inequality, improvements in market stability widen the wealth disparity in the BRICS countries. Limited effects of the stock market indicators on wealth distribution are observed in the G7 countries.

Suggested Citation

  • Dang, Dong Quang & Wu, Weiou & Korkos, Ioannis, 2024. "Stock market and inequality distributions – Evidence from the BRICS and G7 countries," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1172-1190.
    • Handle: RePEc:eee:reveco:v:92:y:2024:i:c:p:1172-1190
    DOI: 10.1016/j.iref.2024.02.067
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