The finance-inequality nexus in the BRICS countries: evidence from an ARDL bound testing approach

Wissem Boukraine

MPRA Paper from University Library of Munich, Germany

Abstract: Increasing inequality keeps any economy stuck in the middle-income group despite its strong growth. The largest of the middle-income economies are the BRICS countries (Brazil, Russia, India, China and South Africa). In this paper we intend to investigate the long run relation between financial development and income inequality and the shape of the curve that describes it for the BRICS countries. We will tests the Greenwood and Jovanovich (1990) hypothesis by estimating an Autoregressive Distributed Lag (ARDL) for the period 1980-2017. We found evidence for an inverted U-shaped curve relation in Brazil, Russia, India and China; which validate the GJ hypothesis.

Keywords: Financial development; Income inequality; ARDL; BRICS (search for similar items in EconPapers)
JEL-codes: C13 G20 I30 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cis and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/101976/1/MPRA_paper_101976.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:101976

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().