Cross country evidence on financial development - income inequality link

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Date

2012

Author

Akbıyık, Ceren

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This study analyzes the relationship between financial development and income inequality by using panel data of 60 developing and developed countries for the period 2000-2010. We find evidence for the linear negative relationship between financial development and income inequality which asserts that financial development reduces income inequality. We also find evidence supporting Kuznets inverted u-shaped hypothesis on development-income inequality link, except that for the developed countries where we find evidence for u-shaped hypothesis. It is also concluded that the panel is stationary without unit root, indicating that shocks on income inequality is not persistent.

Subject Keywords

Income distribution., Distribution (Economic theory)., Wealth.

URI

http://etd.lib.metu.edu.tr/upload/12614851/index.pdf
https://hdl.handle.net/11511/21844

Collections

Graduate School of Social Sciences, Thesis

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Citation Formats

C. Akbıyık, “Cross country evidence on financial development - income inequality link,” M.S. - Master of Science, Middle East Technical University, 2012.