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Stock Returns and Income Inequality in Emerging Economies: Asymmetric Evidence from BRICS and MIKTA

Author

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  • Nazif Durmaz
  • Jiaxin Zheng
  • Pingyu Zhou

Abstract

This article explores the nuanced relationship between stock returns and income inequality within the emerging economies of Brazil, Russia, India, China, and South Africa (BRICS) and Mexico, Indonesia, South Korea, Türkiye, and Australia (MIKTA) countries. The study investigates the interactions that potentially influence socioeconomic disparities through market dynamics. Employing a comprehensive panel data analysis, the study utilizes autoregressive distributed lag (ARDL) and nonlinear ARDL (NARDL) methods to assess the temporal and cross-sectional impacts of stock market fluctuations on income inequality indices, such as the Gini coefficient. The analysis reveals varied responses to stock returns in relation to income inequality across different countries. By integrating both linear and nonlinear approaches in the analysis of stock returns and income inequality, this article contributes to a more nuanced understanding of economic disparities in emerging economies. It underscores the importance of tailored economic policies to manage the impacts of market dynamics on social equity. JEL Classification D63, G10, O16

Suggested Citation

  • Nazif Durmaz & Jiaxin Zheng & Pingyu Zhou, 2025. "Stock Returns and Income Inequality in Emerging Economies: Asymmetric Evidence from BRICS and MIKTA," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 17(3), pages 375-389, September.
    • Handle: RePEc:sae:emeeco:v:17:y:2025:i:3:p:375-389
    DOI: 10.1177/09749101251319584
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    Cited by:

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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