How Development and Liberalisation of the Financial Sector is Related to Income Inequality: Some New Evidence
14 Pages Posted: 30 Jul 2016
Date Written: July 2016
Bumann and Lensink (2016) suggest that the impact of financial liberalization on inequality is conditioned by financial development. Besides presenting a theoretical model that explains the underlying channels, they report empirical results in which capital account liberalisation (as a relatively narrow measure of financial liberalisation) only tends to lower income inequality if the level of financial depth is high enough.
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