Développement financier et réduction des inégalités de revenus en Côte d’Ivoire: une approche par la régression quantile

Financial development and reduction of income inequalities in Côte d’Ivoire: a quantile regression approach

Thiédjé Gaudens-Omer Kouakou and Angbonon Eugène Kamalan

MPRA Paper from University Library of Munich, Germany

Abstract: This study assesses the effect of financial development on income inequality in Côte d'Ivoire, using a multidimensional indicator of financial development that incorporates financial inclusion. We use ARDL and quantile regression methods to regress income inequality (measured by the Gini index) on the indicator of financial development and various control variables over the period 1986-2018. The results show that the financial development indicator only reduces income inequality in the short term. In the long term, it increases them at all quantiles, with a more accentuated effect in the upper quantiles than in the lower quantiles. This counter-intuitive result is explained by the lesser orientation of financial inclusion towards income-generating activities. The study recommends the following measures: link financial inclusion and income-generating activities and strengthen platforms aimed at reducing information asymmetry between borrowers and lenders.

Keywords: Financial development; income inequality; ARDL model; quantile regression. (search for similar items in EconPapers)
JEL-codes: C32 D63 G10 (search for similar items in EconPapers)
Date: 2025-02-09
New Economics Papers: this item is included in nep-fdg and nep-fle
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