Does Financial Openness Matter in the Relationship Between Financial Development and Income Distribution in Latin America?. Issue 5 (3rd May 2016)

• Record Type: Journal Article
• Authors: Guillen, Jorge
• Is Part Of: Emerging markets finance & trade. Volume 52:Issue 5(2016)
• Page Start: 1145
• Page End: 1155
• Publication Date: 2016-05-03
• Subjects: deepness -- financial openness -- financial statements -- Gini coefficient -- poverty; Balkan Peninsula -- Commerce -- Periodicals; Balkan Peninsula -- Foreign economic relations -- Periodicals; Europe, Central -- Commerce -- Periodicals; Europe, Central -- Foreign economic relations -- Periodicals; Europe, Eastern -- Commerce -- Periodicals; Europe, Eastern -- Foreign economic relations -- Periodicals; Turkey -- Commerce -- Periodicals; Turkey -- Foreign economic relations -- Periodicals; Asia -- Commerce -- Periodicals; Asia -- Foreign economic relations -- Periodicals; Eurasia -- Commerce -- Periodicals; Eurasia -- Foreign economic relations -- Periodicals; 382.05
• DOI: 10.1080/1540496X.2015.1046337
• Languages: English
• ISSNs: 1540-496X

Abstract

ABSTRACT: This article examines the effect of financial development on income distribution by analyzing a sample of Latin American countries according to their degree of financial openness for the 1990–2011 period. The period includes the time before and after financial liberalization for most of the countries in the region. As the literature provides inconclusive results regarding the relationship between financial development and income inequality, we aim to determine whether financial openness plays a role in this relationship. Our results provide an explanation for why some countries regardless of their degree of financial openness cannot achieve a reduction in income inequality.