Financial Market Integration and Income Inequality

Jae Wook Jung and Kyunghun Kim ()
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Kyunghun Kim: Korea Institute for International Economic Policy, Postal: Building C, Sejong National Research Complex, 370, Sicheong-daero, Sejong-si,Korea, http://www.kiep.go.kr/index.do

No 18-2, Working Papers from Korea Institute for International Economic Policy

Abstract: Benefits of financial market integration include cheaper and alternative options of saving and borrowing for households and entrepreneurs. In the global financial market, asset choices for households widen so that individuals can manage their idiosyncratic income risk more effectively. On the other hand, financial market integration makes investors who hold foreign assets more vulnerable to global financial shocks. In the recent financial crisis, financial market distress which initially arose in the U.S. had an enormous impact on the peripheral countries. This example shows that the strong shock propagation occurs via integrated financial markets.

Keywords: Financial market development; Financial market integration; Income inequality (search for similar items in EconPapers)
JEL-codes: D63 F36 O11 O16 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2018-07-20
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Related works:
Journal Article: Financial Market Integration and Income Inequality (2021)
Working Paper: Financial Market Integration and Income Inequality (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:kiepwp:2018_002

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