EconPapers    
Economics at your fingertips  
 

Finance, globalisation, technology and inequality: Do nonlinearities matter?

Antonio Francesco Gravina and Matteo Lanzafame ()

Economic Modelling, 2021, vol. 96, issue C, 96-110

Abstract: Relying on data for 90 economies over 1970-2015 and panel estimation techniques, we investigate how financial development, globalisation and technology affect income inequality. Our findings reveal significant nonlinearities, consistent with either Ushaped or inverted-U shaped relationships. As such, depending on whether a certain threshold value is achieved, the same determinants of income distribution exert opposite effects in different countries. Globalisation is associated with increasing inequality in most advanced economies, but with falling disparities for the large majority of emerging economies. Technology and financial development lead to increasing inequality for most emerging economies, while the effects for advanced economies are mixed. Furthermore, our results indicate that credit constraints act as a transmission channel for the effects of financial development on inequality, foreign direct investment and the supply of unskilled labour for the impact of technology and the supply of skilled labour for the effects of globalisation.

Keywords: Inequality; Finance; Globalization; Technology; Nonlinearity; Panel data (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999320312918
Full text for ScienceDirect subscribers only

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:eee:ecmode:v:96:y:2021:i:c:p:96-110

DOI: 10.1016/j.econmod.2020.12.026

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-07-26
Handle: RePEc:eee:ecmode:v:96:y:2021:i:c:p:96-110