Economic Growth, Financial Development, and Income Inequality

Donghyun Park and Kwanho Shin

No 441, ADB Economics Working Paper Series from Asian Development Bank

Abstract: The central objective of our paper is to empirically examine the relationship between financial development and income inequality. Theoretically, there are grounds for both a positive and negative relationship between the two variables. Our main finding is that financial development contributes to reducing inequality up to a point, but as financial development proceeds further, it contributes to greater inequality. We also find that when the ratio of primary schooling to total schooling increases and law and order improves, financial development becomes more effective in reducing inequality.

Keywords: financial development; growth; income inequality (search for similar items in EconPapers)
JEL-codes: D63 G01 O11 O40 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2015-08-05
New Economics Papers: this item is included in nep-gro and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.adb.org/publications/economic-growth-f ... nd-income-inequality Full text (text/html)

Related works:
Journal Article: Economic Growth, Financial Development, and Income Inequality (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0441

Access Statistics for this paper

More papers in ADB Economics Working Paper Series from Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines. Contact information at EDIRC.
Bibliographic data for series maintained by Orlee Velarde ().