The Relationship Between Financial Development and Income Inequality in India: Evidence from VARX and ARDL Assessments

Asian Economic and Financial Review

关键词: Financial development;    Income inequality;    Financial crisis;    Openness;    VARX;    ARDL;    India.;   

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

We examine the relationship between financial development and income inequality in India over the period 1952-2011 using the cointegration techniques of VARX and ARDL. In addressing India?s ?finance-inequality? nexus, we are concerned with finance?s size and efficiency and their linear- and nonlinear effects on income distribution respectively. To consider the influence of India?s exposure to globalization, financial crisis, trade and financial openness are taken into estimation. Our findings are: (i) both financial size and efficiency increase inequality; (ii) economic growth increases, whereas other variables increase inequality; and (iii) the nonlinear effect of financial development is not found.

【 授权许可】

CC BY