2018
DOI: 10.1177/0972150918811246
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Financial Deepening and Income Inequality in Indonesia

Abstract: The research aims to determine the relationship between financial deepening and income inequality in Indonesia. This research applied vector error correction model analysis by using time series data to show the long-term and short-term relationship between financial deepening indicators and income inequality. The research utilizes quarter time-series data from 2000 to 2016. The findings show that the higher ratio of money supply to GDP will increase income inequality in the long run. The development of the sto… Show more

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Cited by 11 publications
(11 citation statements)
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References 14 publications
(20 reference statements)
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“…Deregulation is gradually decreasing inequality in the OECD and ASIAN countries. Rachmawati et al [24] Indonesian financial deepening and income inequality were studied. They examined the relationship of financial deepening indicators to income inequality using time series data.…”
Section: Review Of Literaturementioning
confidence: 99%
“…Deregulation is gradually decreasing inequality in the OECD and ASIAN countries. Rachmawati et al [24] Indonesian financial deepening and income inequality were studied. They examined the relationship of financial deepening indicators to income inequality using time series data.…”
Section: Review Of Literaturementioning
confidence: 99%
“…The income inequality is a concept that explains differences in prosperity, the standard of living, and income received or generated by individuals or households in society, resulting in uneven distribution between regions caused by differences in production factors and resources that exist in various regions (Rachmawati et al, 2021). There are two main concepts regarding the measurement of the income distribution, namely the concept of absolute inequality and the concept of relative inequality.…”
Section: Income Inequality Theorymentioning
confidence: 99%
“…In the global economy, most developing countries face several structural problems in production and consumption systems (Clark, 2007;Akenji & Bengtsson, 2014;Govindan, 2018). Besides, the literature mentions that the developing countries are associated with food security issues, poverty, unemployment, and quality of education (Larson et al, 2007;Etana & Tolossa, 2017;Rachmawati et al, 2018). However, since the nation confronted a trade-off due to scarcity, it forces the government to prioritize the sector to be addressed.…”
Section: Introductionmentioning
confidence: 99%