Equity Market Liberalization, Credit Constraints and Income Inequality

Abstract: This paper provides compelling evidence that equity market liberalization, as the most efficient way to smooth financial market frictions such as credit constraints, can alleviate persistent cross-dynastic income inequality by promoting increased human capital accumulation. The authors examine the effect of equity market liberalization on inequality by using data from 72 countries for 1980–2006. Their measured effect is robust to alternative measures of equity market liberalization. Finally, The authors show that foreign equity flows benefit initially lessactive stock markets more than the active ones, providing evidence that foreign equity flows act as a substitute for domestic financial markets. This finding emphasizes the possibility of reducing inequality and poverty through equity market liberalization.

Object Details

• Location: Deutsche Nationalbibliothek Frankfurt am Main
• Extent: Online-Ressource
• Language: Englisch

References and Relationships

• Bibliographic citation: Equity Market Liberalization, Credit Constraints and Income Inequality ; volume:7 ; number:1 ; year:2013 ; extent:30 ; Economics / Journal articles. Journal articles ; 7, Heft 1 (2013) (gesamt 30)

Contributors, Places and Time

• Creator: Sun, Puyang ; Sen, Somnath ; Jin, Shujing

Further information

• DOI: 10.5018/economics-ejournal.ja.2013-12
• URN: urn:nbn:de:101:1-2412130925490.955198736187
• Rights: Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
• Last update: 15.08.2025, 7:29 AM CEST