Download This PaperBlack Market Premium and Income Distribution
Bahmani-Oskooee, M., Goswami, G. G. & Mebratu, S. (2006). "BLACK MARKET PREMIUM AND INCOME DISTRIBUTION", The Developing Areas, 39(2), 17-28.
12 Pages Posted: 25 Jul 2020
Date Written: Spring 2006
Abstract
The literature on income inequality includes many studies that have tried to identify factors such as level of economic development, rate of economic growth, population growth, resource endowment, price instability, and openness as main determinant of income inequality. In this paper, we show empirically that income inequality is higher in countries that have black market for foreign exchange. One major policy implication of our finding is that exchange rate unification should reduce income inequality.
Keywords: Income Inequality; Black Market Premium; Cross-Sectional Data
JEL Classification: F31
Suggested Citation: Suggested Citation