REINVESTIGATION OF THE RELATIONSHIP BETWEEN INEQUALITY AND BANK-BASED FINANCIAL SYSTEM
Journal Title: Academic Research International - Year 2018, Vol 9, Issue 3
Abstract
This paper assesses the theoretical underpinnings and associated empirical findings of the non-linearity relationship between financial development and inequality by re-examining the results reported in one of the prominent studies in the literature. In contrast to the joint determinations of financial development and inequality, we implement a novel partially linear model to assess the impact of financial development on inequality. We further conduct our own analyses of 1,913 observations of pooled 64 countries over the period 1970-2011. An empirical application suggests that there is dramatic evidence of nonlinearity and there exists a U relation between inequality and bank-based financial system. The U-shaped model suggests that countries choosing to financial development experience a decrease in inequality up to a point, but then can take disadvantage of net benefits after that. Thus, it allows us to unravel the possible directions of non-linearity between the financial development and inequality and to help us shape future policy-oriented research, and to influence the priority that policy makers attach to reforming financial sector policies.
Authors and Affiliations
Chih-Chuan Yeh
Keywords
Related Articles
- EP ID EP614983
- DOI -
- Views 142
- Downloads 0
LEATHER CRAFT INDUSTRY DEVELOPMENT STRATEGY IN TANGGULANGIN FACING ASEAN ECONOMIC COMMUNITY (AEC) IN 2015 WITH IFE AND EFE APPROACH
In facing Asean Economic Community (AEC) in 2015, the challenges that are faced by Indonesian in using ASEAN markets with competitiveness is still relatively low compared to other ASEAN nations; especially Singapore, Mal...
POVERTY AND FAMILY PLANNING PRACTICES OF MARRIED WOMEN
The study examined the relationship between poverty and family planning practices of married women in Zone 5 Barracks of the Nigeria Police. The correlational research design was used. Volunteer sampling was used to se...
An Analytical Approach on Material Selection for Increasing Design Performance in Interior Architecture Projects
One of the most significant decisions having effect on the kitchen design performance is the selection of materials. As such, in the first phase of the study, a literature research was carried out to determine whether a...
CAPACITIES OF WOOD CHARCOALS IN SOUTH KALIMANTAN IN PRODUCING ENERGY FOR HOUSEHOLDS
At the end of the twentieth century, experts realized the impacts of the increasing use of pretrolium when its supply inevitably decreased. Cinnamon and other wood types such as alaban and candlenut are known as the wood...
PHYSIO-CHEMICAL PROPERTIES OF WATARI IRRIGATION WATER
Much of the interpretation of results of water analysis is based on a prediction of the consequences for the soil. Typically, the quality of irrigation water is assessed based on the salt contents and salt inducing par...