 Inequality, Trade Openness and Economic Growth in AsiaMPRA Paper from University Library of Munich, Germany Abstract: Using a panel data set for 18 Asian countries over the period 1970-2008, this study explores the relationship between economic growth and income inequality with special focus on the role of credit market imperfections in shaping the linkage. The study identifies credit market imperfections in developing countries as the likely reason for a positive relation between inequality and economic growth. Countries in the region with high financial intermediation tend to grow more as compare to low financial intermediation. Moreover, this paper finds evidence that more physical and human capital investment have statistically significant and positive effect on economic growth. Finally, openness to trade has been confirmed positive and significant in this region, thereby implying outward looking economies grow more. Keywords: economic growth; inequality; credit market imperfection; panel data (search for similar items in EconPapers) Published in Applied Econometrics and International Development 2.10(2010): pp. 201-212 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:57772 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. |
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