FINANCE AND INEQUALITY: HOW DOES GLOBALIZATION CHANGE THEIR RELATIONSHIP?. (4th June 2013)

• Record Type: Journal Article
• Authors: Kunieda, Takuma; Okada, Keisuke; Shibata, Akihisa
• Is Part Of: Macroeconomic dynamics. Volume 18:Number 5(2014)
• Page Start: 1091
• Page End: 1128
• Publication Date: 2013-06-04
• Subjects: Macroeconomics -- Periodicals; 339.05
• DOI: 10.1017/S1365100512000843
• Languages: English
• ISSNs: 1365-1005

Abstract

<abstract abstract-type="normal"> <title> <x content-type="archive" xml:space="preserve">Abstract</x> </title> <p>This research demonstrates that international financial integration changes the way in which financial development affects inequality within a country. Specifically, both cross-country analysis and dynamic panel data analysis using data collected from more than 100 countries provide evidence indicating that if the financial market of a country is strongly closed to the world market, financial development narrows inequality within that country, whereas if the financial market of a country is strongly open to the world market, financial development widens inequality within that country. Our theoretical framework provides a possible explanation for our empirical findings.</p> </abstract>