Finance and Inequality: How Does Globalization Change Their Relationship Report as inadecuate




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Abstract

This research demonstrates that international financial integration changes the way in which financial development affects inequality within a country. Specifically, both the cross-country analysis and the dynamic panel data analysis using data collected from more than 100 countries provide evidence indicating that if the financial market of a country is highly open to the world market, financial development widens inequality within that country, whereas if the financial market of a country is highly closed to the world market, financial development narrows inequality within that country. Our theoretical framework provides a possible explanation for our empirical findings.



Item Type: MPRA Paper -

Original Title: Finance and Inequality: How Does Globalization Change Their Relationship?-

Language: English-

Keywords: Financial integration; Inequality; Financial development; Credit constraints; Capital flows-

Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth ModelsO - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and GovernanceF - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy MacroeconomicsF - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration-





Author: Kunieda, Takuma

Source: https://mpra.ub.uni-muenchen.de/35358/







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