The impacts of financial development, urbanization, and globalization on income inequality: A regression-based decomposition approach

Arbeitspapier

This paper aims to study the impacts of financial development, urbanization, and globalization on income inequality in the People's Republic of China. It applies the regression-based inequality decomposition approach on a panel dataset, which is aggregated from a unique database of financial development so as to quantify the relative contributions of these three factors, along with other variables such as physical capital and human capital, to income inequality. The findings suggest that financial development, urbanization, and globalization exert a positive impact on income. However, the contributions of urbanization, foreign investment, physical capital, and human capital to regional inequality are positive. Moreover, it is found that financial development is crucial for promoting inclusive growth, since it can stimulate economic growth and is found to be an equalizing factor of inequality.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper ; No. 651

Classification and Topics

• Classification: Wirtschaft ; Index Numbers and Aggregation; Leading indicators ; Economic Growth of Open Economies ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
• Subject: Economics ; China, People's Republic of

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lee, Wai Choi ; Cheong, Tsun Se ; Wu, Yanrui
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/163150
• Last update: 10.03.2025, 11:43 AM CET