Financial development, income inequality and governance institutions

Globalization and Income Inequality: Does the Level of Financial Development Matter?

This paper examines the impact of globalization on income inequality in a panel of 78 developed and developing countries over 2002–2015. Moreover, the indirect effect of financial development in the link between globalization and income inequality is also analyzed by incorporating the interaction term between globalization and financial development. The empirical evidence based on the first-dif...

Financial development and income inequality in rural China 1991 - 2000

Financial development can exert a significant influence on the distribution of income. In this paper, using Chinese provincial data over the period of 1991-2000 and applying the generalized method of moment (GMM) techniques, we investigate the relationship between finance and inequality in rural China by testing alternative existing theories concerning the finance-inequality nexus. A negative a...

Linking Economic Complexity, Institutions, and Income Inequality

— A country’s mix of products predicts its subsequent pattern of diversification and economic growth. But does this product mix also predict income inequality? Here we combine methods from econometrics, network science, and economic complexity to show that countries exporting complex products—as measured by the Economic Complexity Index—have lower levels of income inequality than countries expo...

Legal Institutions and Financial Development

A burgeoning literature finds that financial development exerts a first-order impact on long-run economic growth, which raises critical questions, such as why do some countries have welldeveloped growth-enhancing financial systems, while others do not? The law and finance theory focuses on the role of legal institutions in explaining international differences in financial development. First, th...

Financial Development And The Distribution Of Income In MENA