The Influence of Financial Development on Wealth Inequality in Capitalism: Fresh Evidence From Emerging Countries
Our study focuses on how financial development (FD) affects wealth inequality (WI) in ten emerging countries from 1995 to 2020. These countries include Brazil, China, India, Indonesia, Malaysia, Mexico, the Philippines, South Africa, Thailand, and Türkiye. We analyzed the impact of economic growth (...
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| Format: | Article |
| Language: | English |
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The Institute of Economics, Zagreb
2024-01-01
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| Series: | Croatian Economic Survey |
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| Online Access: | https://hrcak.srce.hr/file/472279 |
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| author | Orhan Cengiz Müge Manga |
| author_facet | Orhan Cengiz Müge Manga |
| author_sort | Orhan Cengiz |
| collection | DOAJ |
| description | Our study focuses on how financial development (FD) affects wealth inequality (WI) in ten emerging countries from 1995 to 2020. These countries include Brazil, China, India, Indonesia, Malaysia, Mexico, the Philippines, South Africa, Thailand, and Türkiye. We analyzed the impact of economic growth (EG) and trade openness (TO) on WI using the augmented mean group (AMG) estimator. Our research showed that FD leads to an increase in WI among panel groups, particularly in Brazil, China, Mexico, and the Philippines. Additionally, EG and TO have a positive effect on WI for panel samples. We also found a two-way causality relationship between FD and WI, EG and WI, and WI and TO. Our paper concludes with a policy recommendation that government intervention is crucial in ensuring that lower-income individuals have equal access to financial assets. |
| format | Article |
| id | doaj-art-7a36c4011f8942a8927e873cbd7629d4 |
| institution | Kabale University |
| issn | 1330-4860 1846-3878 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | The Institute of Economics, Zagreb |
| record_format | Article |
| series | Croatian Economic Survey |
| spelling | doaj-art-7a36c4011f8942a8927e873cbd7629d42025-01-13T12:17:53ZengThe Institute of Economics, ZagrebCroatian Economic Survey1330-48601846-38782024-01-0126253910.15179/ces.26.2.1The Influence of Financial Development on Wealth Inequality in Capitalism: Fresh Evidence From Emerging CountriesOrhan Cengiz0Müge Manga1Cukurova University, Pozanti Vocational School, Department of Accounting and Taxation, Pozanti-Adana, TurkeyErzincan Binali Yıldırım University, FEAS, Department of Economics, Erzincan, TurkeyOur study focuses on how financial development (FD) affects wealth inequality (WI) in ten emerging countries from 1995 to 2020. These countries include Brazil, China, India, Indonesia, Malaysia, Mexico, the Philippines, South Africa, Thailand, and Türkiye. We analyzed the impact of economic growth (EG) and trade openness (TO) on WI using the augmented mean group (AMG) estimator. Our research showed that FD leads to an increase in WI among panel groups, particularly in Brazil, China, Mexico, and the Philippines. Additionally, EG and TO have a positive effect on WI for panel samples. We also found a two-way causality relationship between FD and WI, EG and WI, and WI and TO. Our paper concludes with a policy recommendation that government intervention is crucial in ensuring that lower-income individuals have equal access to financial assets.https://hrcak.srce.hr/file/472279financial developmentfinancializationwealth inequalityincome inequalityemerging countries |
| spellingShingle | Orhan Cengiz Müge Manga The Influence of Financial Development on Wealth Inequality in Capitalism: Fresh Evidence From Emerging Countries Croatian Economic Survey financial development financialization wealth inequality income inequality emerging countries |
| title | The Influence of Financial Development on Wealth Inequality in Capitalism: Fresh Evidence From Emerging Countries |
| title_full | The Influence of Financial Development on Wealth Inequality in Capitalism: Fresh Evidence From Emerging Countries |
| title_fullStr | The Influence of Financial Development on Wealth Inequality in Capitalism: Fresh Evidence From Emerging Countries |
| title_full_unstemmed | The Influence of Financial Development on Wealth Inequality in Capitalism: Fresh Evidence From Emerging Countries |
| title_short | The Influence of Financial Development on Wealth Inequality in Capitalism: Fresh Evidence From Emerging Countries |
| title_sort | influence of financial development on wealth inequality in capitalism fresh evidence from emerging countries |
| topic | financial development financialization wealth inequality income inequality emerging countries |
| url | https://hrcak.srce.hr/file/472279 |
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