The social fragility of financial development. A regional panel analysis of the financial development and inequality nexus on prior middle-income countries
(2021) EKHS21 20211Department of Economic History
- Abstract
- This paper investigates the impact of financial development as a bi-dimensional concept on inequality in a regional comparison of Asian as well as Latin American countries. The policy has previously been explicitly proposed for middle-income economies to boost growth and overall prosperity. While allowing for nonlinearities, this paper exploits both static, fixed effects as well as dynamic GMM estimation techniques utilising a self-assembled dataset on income shares as well as a set of macroeconomic controls motivated by earlier literature. The estimates retrieved in this analysis consistently imply inequality rises either immediately or in the long run depending on the geographic region. Although matching some earlier empirical work, the... (More)
- This paper investigates the impact of financial development as a bi-dimensional concept on inequality in a regional comparison of Asian as well as Latin American countries. The policy has previously been explicitly proposed for middle-income economies to boost growth and overall prosperity. While allowing for nonlinearities, this paper exploits both static, fixed effects as well as dynamic GMM estimation techniques utilising a self-assembled dataset on income shares as well as a set of macroeconomic controls motivated by earlier literature. The estimates retrieved in this analysis consistently imply inequality rises either immediately or in the long run depending on the geographic region. Although matching some earlier empirical work, the findings partly necessitate a further theoretical substantiation of the financial development and growth nexus, possibly incorporating aspects of intensified elitist rent-seeking behaviour as financialisation advances. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9060894
- author
- Azzab, Meisara-Salem LU
- supervisor
- organization
- course
- EKHS21 20211
- year
- 2021
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- financial liberalisation, financial deepening, income inequality, dynamic panel data model, U-shaped relationship
- language
- English
- id
- 9060894
- date added to LUP
- 2021-08-26 10:21:43
- date last changed
- 2021-08-26 10:21:43
@misc{9060894, abstract = {{This paper investigates the impact of financial development as a bi-dimensional concept on inequality in a regional comparison of Asian as well as Latin American countries. The policy has previously been explicitly proposed for middle-income economies to boost growth and overall prosperity. While allowing for nonlinearities, this paper exploits both static, fixed effects as well as dynamic GMM estimation techniques utilising a self-assembled dataset on income shares as well as a set of macroeconomic controls motivated by earlier literature. The estimates retrieved in this analysis consistently imply inequality rises either immediately or in the long run depending on the geographic region. Although matching some earlier empirical work, the findings partly necessitate a further theoretical substantiation of the financial development and growth nexus, possibly incorporating aspects of intensified elitist rent-seeking behaviour as financialisation advances.}}, author = {{Azzab, Meisara-Salem}}, language = {{eng}}, note = {{Student Paper}}, title = {{The social fragility of financial development. A regional panel analysis of the financial development and inequality nexus on prior middle-income countries}}, year = {{2021}}, }