The Effects of Financial Development on Income Inequality and Poverty

Arbeitspapier

This paper examines the effects of financial development on income inequality and poverty. The results of both cross-country and panel data regressions suggest that inequality and poverty are reduced not only through enhanced loan markets, but also through more developed stock markets. We show that ethnic diversity and the distribution of land are significant and robust determinants of both income inequality and poverty. Finally, we find evidence that government spending leads to a reduction in income inequality in high income countries. In low income countries, however, we find no significant effect.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Working Paper Series ; No. 10/127

Classification and Topics

• Classification: Wirtschaft ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Financial Institutions and Services: General
• Subject: Financial development ; inequality ; poverty ; Finanzmarktregulierung ; Finanzsektor ; Einkommensverteilung ; Soziale Ungleichheit ; Armut ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kappel, Vivien
• Event: Veröffentlichung
• (who): ETH Zurich, CER-ETH - Center of Economic Research
• (where): Zurich
• (when): 2010

Further information

• DOI: doi:10.3929/ethz-a-006032047
• Handle: http://hdl.handle.net/10419/171570
• Last update: 10.03.2025, 11:42 AM CET