Finance and Inequality: How Does Globalization Change Their Relationship?

Takuma Kunieda, Keisuke Okada and Akihisa Shibata

MPRA Paper from University Library of Munich, Germany

Abstract: This research demonstrates that international financial integration changes the way in which financial development affects inequality within a country. Specifically, both the cross-country analysis and the dynamic panel data analysis using data collected from more than 100 countries provide evidence indicating that if the financial market of a country is highly open to the world market, financial development widens inequality within that country, whereas if the financial market of a country is highly closed to the world market, financial development narrows inequality within that country. Our theoretical framework provides a possible explanation for our empirical findings.

Keywords: Financial integration; Inequality; Financial development; Credit constraints; Capital flows (search for similar items in EconPapers)
JEL-codes: F36 F41 O16 O41 (search for similar items in EconPapers)
Date: 2011-12-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/35358/1/MPRA_paper_35358.pdf original version (application/pdf)

Related works:
Journal Article: FINANCE AND INEQUALITY: HOW DOES GLOBALIZATION CHANGE THEIR RELATIONSHIP? (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:35358

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().