| The Role of Financial Development in Reducing Income Inequality in Selected Asian Countries |
Yujue Wang, 1 Nur Syazwani Mazlan, 1 Wan Azman Saini Wan Ngah, 1 Muhammad Faheem, 2 |
1Universiti Putra Malaysia, Selangor Darul Ehsan, Malaysia
2Bahauddin Zakariya University, Multan, Pakistan |
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Corresponding Author:
Yujue Wang ,Email: wangyujue325@gmail.com |
| Copyright ©2024 The Journal of Economic Integration |
| ABSTRACT |
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The present study investigated the effects of financial development on income inequality for three income level groups across 12 Asian countries (areas) from 1980-2020. The three groups comprised countries with low, moderate, and high economic development. Using the Quantile-on-Quantile (QQ) approach, The findings showed that the impact of financial development on income inequality differed across the income level groups of the 12 selected Asian countries. The results suggested that financial development exacerbated income inequality in underdeveloped countries, while for moderately developed countries, financial development promoted income equality. Except for South Korea, the other countries in the high economic development group showed that financial development exacerbated income inequality. Therefore, the impact of financial development on income should be examined by groups, in which moderately-developed countries could devote more attention to promoting income equality through reforms focusing on the development of financial diversification and the enhancement of financial depth.
JEL Classification
O15: Human Resources; Human Development; Income Distribution; Migration
O40: General
O53: Asia including Middle East
G10: General
G20: General |
| Keywords:
financial development | income inequality | GINI | QQR
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