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 131
- Downloads 0
Problems Faced by Special Education Teachers in Teaching Mathematics to Students with Deafness
This qualitative paper aimed to identify the problems of special education teachers in teaching modified curriculum of Mathematics to students with deafness from Grade 6 to 10. It was also intended to suggest measures fo...
CHALLENGES ON IMPLEMENTATION OF ART AND DESIGN CURRICULUM IN SECONDARY SCHOOLS IN KENYA
Art and Design Curriculum contributes immensely in all areas of the society such as Social/cultural, Economic, Political, Utilitarian, Communication and Personal expression. This subject interlocks strongly...
THE MANIFESTATION OF CULTURE IN IRANIAN AND TURKISH HIGH SCHOOL ENGLISH TEXT BOOKS
The aim of this study is to examine the cultural references in Iranian and Turkish high school English text books. Because textbooks play a pivotal role in the realm of language teaching and learning and they are...
The Influence of Trade Unions on the Welfare of Production Workers in East Java
The purpose of this study was to determine the influence of trade unions on the welfare of production workers in East Java. In this study as the independent variable is the trade union and the dependent variable is the w...
Cauchy-Schwarz and Means Inequalities for Selfadjoint Operator
We determined that for bounded operators and on a Hilbert space there holds for all , and if and are additionally self-adjoint operators, then for all . We proved that if and are self-adjoint operators...