Item Details
Skip Navigation Links
   ActiveUsers:1089Hits:21170185Skip Navigation Links
Show My Basket
Contact Us
IDSA Web Site
Ask Us
Today's News
HelpExpand Help
Advanced search

In Basket
  Article   Article
 

ID136275
Title ProperFinancial sector policies and income inequality
LanguageENG
AuthorJohansson, Anders C ;  Wang, Xun
Summary / Abstract (Note)While finance has been shown to influence the distribution of income, little research has been devoted to the potential impact of financial policy on income inequality. This study analyzes the relationship between repressive financial policies and inequality across countries. We show that financial repression tends to increase income inequality. Robustness checks using GMM estimation and the modeling average method confirm the positive relationship between financial repression and income inequality. We also find that credit controls and entry barriers in banking sector are the two most important financial policies influencing inequality. Moreover, GDP per capita growth and urbanization serve as two important factors that might alleviate income inequality. These results have important policy implications, not the least so for quickly developing countries such as China, where rising inequality possesses a significant problem.
`In' analytical NoteChina Economic Review Vol.31, No. ; Dec.2014: p.367-378
Journal SourceChina Economic Review 2014-12 31
Standard NumberPolitics