Financial development and income inequality at different levels of institutional quality

Citation

Law, Siong Hook and Tan, Hui Boon and Wan Ngah, Wan Azman Saini (2014) Financial development and income inequality at different levels of institutional quality. Emerging Markets Finance and Trade, 50 (suppl.1). pp. 21-33. ISSN 1540-496X; ESSN: 1558-0938

Abstract

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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Official URL or Download Paper: http://www.tandfonline.com/doi/abs/10.2753/REE1540...

Additional Metadata

Item Type:	Article
Divisions:	Faculty of Economics and Management
DOI Number:	https://doi.org/10.2753/REE1540-496X5001S102
Publisher:	M.E. Sharpe
Keywords:	Financial development; Income inequality; Institutions; Threshold regression
Depositing User:	Nabilah Mustapa
Date Deposited:	01 Sep 2015 00:26
Last Modified:	01 Oct 2015 03:02
Altmetrics:	http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.2753/REE1540-496X5001S102
URI:	http://psasir.upm.edu.my/id/eprint/37668
Statistic Details:	View Download Statistic

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