Nikoloski, Zlatko 
ORCID: 0000-0003-0609-5832
(2013)
Financial sector development and inequality: is there a financial Kuznets curve?
Journal of International Development, 25 (7).
pp. 897-911.
ISSN 0954-1748
Abstract
The existing empirical knowledge in the area of financial sector development and income inequality finds evidence for the theoretical work which posits a simple, linear relationship between the two variables. In this article, we subject the extant empirical knowledge to close scrutiny and point out to a potential dynamic and endogenous relationship between financial sector development and inequality. By using dynamic multivariate panel data analysis on a carefully selected data set of income inequality data for developed and developing countries spanning the period 1962–2006, we find robust empirical evidence for the existence of an inverted U-curve relationship between financial sector development and income inequality. In that token, we confirm the theoretical stipulations of Greenwood and Jovanovic (1990) for an inverted U-curve relationship between the financial sector and income inequality.
| Item Type: | Article |
|---|---|
| Official URL: | http://onlinelibrary.wiley.com/journal/10.1002/%28... |
| Additional Information: | © 2012 John Wiley & Sons |
| Divisions: | LSE Health |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions |
| JEL classification: | F - International Economics > F0 - General G - Financial Economics > G0 - General |
| Date Deposited: | 12 Sep 2012 14:13 |
| Last Modified: | 12 Dec 2024 00:18 |
| URI: | http://eprints.lse.ac.uk/id/eprint/45815 |
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