Financial development and income inequality: evidence from China

Samuel M. Jung and Hyungju Edmond Cha

Journal of the Asia Pacific Economy, 2021, vol. 26, issue 1, 73-95

Abstract: This article explored the long-run relationship between financial development and income inequality at the provincial level. In contrast with the intuitive hypothesis that financial deepening helps reduce the inequality, the provincial data reveal that financial deepening cannot improve the inequality. Instead, it makes the inequality worse. Since this result implies that financial development can increase GDP per capita and also increase income inequality, China is not passing the turning point of the inverted U-shaped curve yet. This is consistent to the fact that China is a developing country.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://hdl.handle.net/10.1080/13547860.2020.1717301 (text/html)
Access to full text is restricted to subscribers.

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:taf:rjapxx:v:26:y:2021:i:1:p:73-95

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjap20

DOI: 10.1080/13547860.2020.1717301

Access Statistics for this article

Journal of the Asia Pacific Economy is currently edited by Leong Liew

More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().