Cross country evidence on financial development - income inequality link

Download
2012
Akbıyık, Ceren
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.

Suggestions

Internal migration, redistributive policies and income distribution in Turkey: an intertemporal CGE analysis
Yakut, Aykut Mert; Taymaz, Erol; Department of Economics (2016)
This thesis focuses on the effects of the public policies on the size distribution of income in Turkey. To this end, an intertemporal computable general equilibrium model with heterogeneous agents in a small open economy framework is constructed. This study serves several extensions to the literature with its algebraic structure and calibration process in which various micro-level data sets have been utilized extensively. The results reveal that, in line with the previous findings of the literature, increas...
The growth of income and energy consumption in six developing countries
Sarı, Ramazan; Soytaş, Uğur (2007-02-01)
This paper reexamines the inter-temporal link between energy consumption and income in six developing countries with diverse economic backgrounds and energy statistics, in a production function framework. We employ the generalized variance decompositions and generalized impulse response techniques to see if the growth of income and energy consumption contains considerable information to predict each other. In all countries, energy appears as an essential factor of production. Results indicate that energy ma...
The Granger-causality between health care expenditure and output: a panel data approach
Erdil, Erkan (Informa UK Limited, 2009-01-01)
This study investigates the Granger-causality relationship between real per capita GDP and real per capita health care expenditure by employing a large macro panel data set with a VAR representation. The findings verify that the dominant type of Granger-causality is bidirectional. In instances that we found one-way causality, the pattern is not homogenous: Our analyses show that one-way causality generally runs from income to health in low- and middle-income countries whereas the reverse holds for high-inco...
The Relationship between unemployment rate and growth: time series approach for Turkey
Akpiliç, Ferdi; Yozgatlıgil, Ceylan; Department of Statistics (2016)
This study analyzes the relationship of economic growth and unemployment by using quarterly data for the period 2005:Q1-2016:Q1 for Turkish Economy. Three different versions of Okun’s law which are difference, gap and dynamic versions are investigated in the study. According to results, it is found that Okun’s Law is valid for Turkey. In addition, productivity variable is added to dynamic models to test effect of productivity on unemployment rate and models results reveal positive relationship between produ...
Nonlinear models, composite longer leading indicator and forecasts for UK real GDP
Ocal, N (Informa UK Limited, 2006-05-20)
This paper examines the role of the Office for National Statistics Composite Longer Leading Indicator, in nonlinear business cycle models for growth rates of UK real gross domestic product (GDP). These models are of the smooth transition regression class, with the transition between "regimes'' expressed as functions of lagged changes in the leading indicator. In general, evidence is found of business cycle regime asymmetries, with increases and decreases in the leading indicator implying distinct responses ...
Citation Formats
C. Akbıyık, “Cross country evidence on financial development - income inequality link,” M.S. - Master of Science, Middle East Technical University, 2012.