Financial development and income inequality at different levels of institutional quality
We examine whether the relationship between financial development and income inequality varies with levels of institutional quality. The empirical evidence based on the threshold regression approach shows that there indeed exists an institutional quality threshold effect in the relationship between...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
M.E. Sharpe
2014
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| Online Access: | http://psasir.upm.edu.my/id/eprint/37668/ http://psasir.upm.edu.my/id/eprint/37668/1/Financial%20development%20and%20income%20inequality%20at%20different%20levels%20of%20institutional%20quality.pdf |
| _version_ | 1848848669919412224 |
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| author | Law, Siong Hook Tan, Hui Boon Wan Ngah, Wan Azman Saini |
| author_facet | Law, Siong Hook Tan, Hui Boon Wan Ngah, Wan Azman Saini |
| author_sort | Law, Siong Hook |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | We examine whether the relationship between financial development and income inequality varies with levels of institutional quality. The empirical evidence based on the threshold regression approach shows that there indeed exists an institutional quality threshold effect in the relationship between financial development and income inequality. Financial development tends to reduce income inequality only after a certain threshold level of institutional quality has been achieved. Until then, the effect of financial development on income inequality is nonexistent. This finding suggests that institutional quality affects the link between financial development and income inequality, reflecting the notion that better quality finance results in more equal income distribution. |
| first_indexed | 2025-11-15T09:38:11Z |
| format | Article |
| id | upm-37668 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T09:38:11Z |
| publishDate | 2014 |
| publisher | M.E. Sharpe |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-376682015-10-01T03:02:18Z http://psasir.upm.edu.my/id/eprint/37668/ Financial development and income inequality at different levels of institutional quality Law, Siong Hook Tan, Hui Boon Wan Ngah, Wan Azman Saini We examine whether the relationship between financial development and income inequality varies with levels of institutional quality. The empirical evidence based on the threshold regression approach shows that there indeed exists an institutional quality threshold effect in the relationship between financial development and income inequality. Financial development tends to reduce income inequality only after a certain threshold level of institutional quality has been achieved. Until then, the effect of financial development on income inequality is nonexistent. This finding suggests that institutional quality affects the link between financial development and income inequality, reflecting the notion that better quality finance results in more equal income distribution. M.E. Sharpe 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/37668/1/Financial%20development%20and%20income%20inequality%20at%20different%20levels%20of%20institutional%20quality.pdf Law, Siong Hook and Tan, Hui Boon and Wan Ngah, Wan Azman Saini (2014) Financial development and income inequality at different levels of institutional quality. Emerging Markets Finance and Trade, 50 (suppl.1). pp. 21-33. ISSN 1540-496X; ESSN: 1558-0938 http://www.tandfonline.com/doi/abs/10.2753/REE1540-496X5001S102#.Vbs49_kXWf4 10.2753/REE1540-496X5001S102 |
| spellingShingle | Law, Siong Hook Tan, Hui Boon Wan Ngah, Wan Azman Saini Financial development and income inequality at different levels of institutional quality |
| title | Financial development and income inequality at different levels of institutional quality |
| title_full | Financial development and income inequality at different levels of institutional quality |
| title_fullStr | Financial development and income inequality at different levels of institutional quality |
| title_full_unstemmed | Financial development and income inequality at different levels of institutional quality |
| title_short | Financial development and income inequality at different levels of institutional quality |
| title_sort | financial development and income inequality at different levels of institutional quality |
| url | http://psasir.upm.edu.my/id/eprint/37668/ http://psasir.upm.edu.my/id/eprint/37668/ http://psasir.upm.edu.my/id/eprint/37668/ http://psasir.upm.edu.my/id/eprint/37668/1/Financial%20development%20and%20income%20inequality%20at%20different%20levels%20of%20institutional%20quality.pdf |