INCOME DISTRIBUTION, GROWTH AND FINANCIAL DEVELOPMENT A Cross Countries Analysis
نویسندگان
چکیده
Income inequality is an important economic issue faced by most of the developed and developing countries. Many attempts have been made to identify a link between economic growth and income inequality in the past. However, the literature is not conclusive about the relationship between economic development and income inequality. This study attempts to analyze the factors responsible for income inequality among the different groups of countries at different stages of economic growth and test the Kuznet’s hypothesis by breaking panel of countries into four sub-panels; low income, lower middle income, upper income and higher income countries. In this study a larger set of variables are utilized for investigating the cross country differences in income inequality. The results of the study find the evidence of the existence of inverted U-shaped hypothesis for income growth. Financial development reduces the inequalities in income distribution irrespective of stage of development, and hence negates the inverted U-shaped relationship between inequality and financial development.
منابع مشابه
The effect of financial Islamization index on income distribution and economic growth
Economic growth and income distribution are among the most important variables reflecting the economic status of a society, and much of the economic literature is devoted to studying the variables affecting these two economic criteria. One of the factors influencing these two variables is the financial system. Although many studies have been conducted on the impact of different indicators of fi...
متن کاملتأثیر اصلاحات مالی بر رشد اقتصادی و ایجاد همگرایی بین کشورهای برگزیدهی اسلامی
The theoretical literature of economic growth (endogenous and exogenous growth model) and empirical evidence in developed and developing countries show that without financial reform, sustainable development is impossible. The positive effects of financial sector development on economic growth and developments in the international financial sector make a more important issue. Some economists bel...
متن کاملComparing the Income Elasticity of Health Spending in Middle-Income and High-Income Countries: The Role of Financial Protection
Background As middle-income countries become more affluent, economically sophisticated and productive, health expenditure patterns are likely to change. Other socio-demographic and political changes that accompany rapid economic growth are also likely to influence health spending and financial protection. Methods This study investigates the relationship between growth on per-capita healthcare...
متن کاملThe Effect of Financial development and Trade liberalization on Eeconomic growth In Upper Middle Income Countries
Abstract For more than a decade now, Various efforts have been put in place by various governments of developing economies to promote economic growth. The impact of financial development and Trade liberalization on economic growth in the developing economies has been a subject of much debates and controversies. The contradictions in literature on the subject matter shows that these relationship...
متن کاملAnalysis of the Effect of Financial Policy (Income Tax) on Income Distribution in Iran with ARDL Approach
Economic justice and equitable distribution of income, along with important issues such as economic growth and development, the reduction of inflation and unemployment, have always been of concern to economists. Fair distribution of income and reduction of income inequality in society, and the identification of factors affecting income inequality to make the right policy are necessary and obvio...
متن کامل