Stock Returns and Income Inequality in Emerging Economies: Asymmetric Evidence from BRICS and MIKTA

Nazif Durmaz, Jiaxin Zheng and Pingyu Zhou

Global Journal of Emerging Market Economies, 2025, vol. 17, issue 3, 375-389

Abstract: This article explores the nuanced relationship between stock returns and income inequality within the emerging economies of Brazil, Russia, India, China, and South Africa (BRICS) and Mexico, Indonesia, South Korea, Türkiye, and Australia (MIKTA) countries. The study investigates the interactions that potentially influence socioeconomic disparities through market dynamics. Employing a comprehensive panel data analysis, the study utilizes autoregressive distributed lag (ARDL) and nonlinear ARDL (NARDL) methods to assess the temporal and cross-sectional impacts of stock market fluctuations on income inequality indices, such as the Gini coefficient. The analysis reveals varied responses to stock returns in relation to income inequality across different countries. By integrating both linear and nonlinear approaches in the analysis of stock returns and income inequality, this article contributes to a more nuanced understanding of economic disparities in emerging economies. It underscores the importance of tailored economic policies to manage the impacts of market dynamics on social equity. JEL Classification D63, G10, O16

Keywords: Brazil; Russia; India; China; and South Africa (BRICS); Mexico; Indonesia; South Korea; Türkiye; and Australia (MIKTA); income inequality; stock returns; autoregressive distributed lag; asymmetry; ARDL (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:emeeco:v:17:y:2025:i:3:p:375-389

DOI: 10.1177/09749101251319584

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