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Inequality, finance and development : evidence from low-income developing economies
Other Title(s)
عدم المساواة و التمويل و التنمية : أدلة من الاقتصادات النامية ذات الدخل المنخفض
Author
Source
Journal of Development and Economic Policies
Issue
Vol. 19, Issue 1 (31 Jan. 2017), pp.33-48, 16 p.
Publisher
Publication Date
2017-01-31
Country of Publication
Kuwait
No. of Pages
16
Main Subjects
Abstract EN
The purpose of this study is to examine the impact of financial and economic development on cross-country income inequality using a panel data set from 50 low-income developing counties.
The empirical analysis is based on fixed effects 2SLS model.
The results show that a non-monotonic relationship between financial development and inequality, predicted by Greenwood and Jovanovic (1990), does hold.
The study, also, finds a non-monotonic relationship between inequality and the level of economic development, which supports Kuznets’s inverted-U hypothesis.
The government emerges as a major player in reducing income inequalities as its role is significant in all models.
The study suggests that the policy makers must focus primarily on economic development to reduce inequalities.
Since financial development, at higher levels, also reduces inequalities, policy makers also need to encourage financial reforms.
American Psychological Association (APA)
Majid, Muhammad. 2017. Inequality, finance and development : evidence from low-income developing economies. Journal of Development and Economic Policies،Vol. 19, no. 1, pp.33-48.
https://search.emarefa.net/detail/BIM-886321
Modern Language Association (MLA)
Majid, Muhammad. Inequality, finance and development : evidence from low-income developing economies. Journal of Development and Economic Policies Vol. 19, no. 1 (Jan. 2017), pp.33-48.
https://search.emarefa.net/detail/BIM-886321
American Medical Association (AMA)
Majid, Muhammad. Inequality, finance and development : evidence from low-income developing economies. Journal of Development and Economic Policies. 2017. Vol. 19, no. 1, pp.33-48.
https://search.emarefa.net/detail/BIM-886321
Data Type
Journal Articles
Language
English
Notes
Includes appendix : p. 48
Record ID
BIM-886321