A Closer Look at Financial Development and Income Distribution

Gimet, Céline; Lagoarde‐Segot, Thomas

doi:10.2139/ssrn.1757876

Cited by 32 publications

(42 citation statements)

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“…The control variables for inequality are identified based on the literature survey. For example, greater economic development, which is proxied by GDPC, tends to improve the income distribution (Agnello et al 2012;Gimet and Lagoarde-Segot 2011;Kus* tepeli 2006;Mookerjee and Kalipioni 2010). We control for human capital or educational attainment because Downloaded by [Northwestern University] at 08:21 25 March 2015 these factors have been found to affect income inequality (Ang 2010;Beck et al 2007;Huggett et al 2006).…”

Section: The Empirical Model and Econometric Methodologymentioning

confidence: 99%

“…(2) The number of available observations for stock market indicators is insufficient to conduct sample-splitting regression. In addition, the banking sector seems to exert stronger influence on income inequality than does the stock market (Gimet and Lagoarde-Segot 2011). These banking sector developments are (1) private sector credit, which equals the value of credit issued by financial intermediaries to the private sector; (2) bank credit, defined as the credit extended by deposit money banks to the private sector; and (3) commercial bank branches, which is the number of commercial banks that provide financial services to customers and are physically separated from the main office but are not organized as legally separated subsidiaries.…”

Section: The Datamentioning

confidence: 99%

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Financial Development and Income Inequality at Different Levels of Institutional Quality

Law

Tan

Azman-Saini

2014

Emerging Markets Finance and Trade

137

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We examine whether the relationship between financial development and income inequality varies with levels of institutional quality. The empirical evidence based on the threshold regression approach shows that there indeed exists an institutional quality threshold effect in the relationship between financial development and income inequality. Financial development tends to reduce income inequality only after a certain threshold level of institutional quality has been achieved. Until then, the effect of financial development on income inequality is nonexistent. This finding suggests that institutional quality affects the link between financial development and income inequality, reflecting the notion that better quality finance results in more equal income distribution.

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Section: The Empirical Model and Econometric Methodologymentioning

confidence: 99%

Section: The Datamentioning

confidence: 99%

Financial Development and Income Inequality at Different Levels of Institutional Quality

Law

Tan

Azman-Saini

2014

Emerging Markets Finance and Trade

137

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“…Many of the more recent income inequality studies use the EHII Gini coefficient (Meschi and Vivarelli, 2009;Gimet and Lagoarde-Segot, 2011;Herzer and Vollmer, 2012). The inherent limitation of this index is that it is estimated, and estimates may be biased (for several reasons).…”

Section: Datamentioning

confidence: 99%

The effect of foreign aid on income inequality: Evidence from panel cointegration

Herzer

Nunnenkamp

2012

Structural Change and Economic Dynamics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper examines the long-run effect of foreign aid on income inequality for 21 recipient countries using panel cointegration techniques to control for omitted variable and endogeneity bias. We find that aid exerts an inequality increasing effect on income distribution. Terms of use: Documents in EconStor may

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“…Governments in these countries often fail to develop policies that create interbank competition, legal and institution-level safeguards for financial transactions, and equality of access to finance (Gimet and Lagoarde-Segot 2011). Studies conducted in India have highlighted a few additional issues relating to bank finance for SMEs, such as the tardy development of the banking sector, with inadequate coverage of branches in many localities (Kendall 2012) and the inability and even unwillingness of banks to finance the vulnerable segments (Sonne 2012).…”

Section: Bank Financementioning

confidence: 99%