A new approach to financial integration and market income inequality

Inekwe, John Nkwoma; Jin, Yi; Valenzuela, Maria Rebecca

doi:10.1016/j.ememar.2018.07.002

Cited by 14 publications

(9 citation statements)

References 55 publications

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“…The result showed that globalization had an inverse relationship to inequality. In the study done by Inekwe et al (2018), there was a new approach to financial integration and market income inequality with a composite sample of 39 countries in 1989-2014. The author used the Gini market variables and the Gini net to measure market income inequality and net income inequality.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Firstly, there are some evidences that economic integration increases inequality (Alderson & Nielser, 2002;Goldberg & Pavcnik, 2007;Nascia & Pianta, 2009;Wu & Hsu, 2012;Daumal, 2013;Mihaylova, 2015). Secondly, some studies show that economic integration leads to reduce inequality (eg., Zhou et al, 2011;Daumal, 2013;Jiang, 2016;Inekwe et al, 2018). Thirdly, some other results suggest that economic integration is not related to inequality (Tian et al, 2008;Franco & Gerussi, 2013;Beak & Shi, 2015;Wong, 2016).…”

Section: Introductionmentioning

confidence: 98%

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Does Economic Integration Affect Inequality in Developing Countries? Evidence from a Global Sample

Tùng¹,

Thang²,

Uyen³

2020

EJSD

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Economic integration plays an important role in promoting economic growth. However, it can also increase inequality, although the relationship between economic integration and inequality is still unclear. Our paper aims to study the impact of economic integration on income inequality with a global sample regarding 59 developing countries collected from 1996-2016. Besides, we divide the overall sample into three smaller examples including developing countries in Asia, Africa, and Latin-America. Unlike previous studies, our research results confirm that economic integration has a multidimensional impact on inequality in countries. In detail, trade openness can help to reduce inequality, however, foreign direct investment increases inequality during the study period. The Kuznets' inverted-U curve among income and inequality is confirmed in the cases including the overall sample, Asia and Africa, excluding for the Latin-America. Finally, technology development and remittances are found to play a negative impact on inequality, while inflation leads to an increase in inequality level in developing countries. Keywords: economic integration, inequality, trade openness, FDI, Kuznets, developing country

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

Does Economic Integration Affect Inequality in Developing Countries? Evidence from a Global Sample

Tùng¹,

Thang²,

Uyen³

2020

EJSD

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“…8 8 These same variables are used in macroeconomic studies such as Inekwe, Jin and Rebecca Valenzuela (2018), Inekwe (2019b), Inekwe and Valenzuela, 2019, and Inekwe (2019c). …”

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confidence: 99%

“…These same variables are used in macroeconomic studies such asInekwe, Jin and Rebecca Valenzuela (2018),Inekwe (2019b),Valenzuela, 2019, andInekwe (2019c).© 2021 The Department of Economics, University of Oxford and John Wiley & Sons Ltd…”

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confidence: 99%

Convergence in Sovereign Debt Defaults: Quantifying the Roles of Institutions

Bhattacharya

Inekwe

2021

Oxf Bull Econ Stat

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In this study, using an ex ante measure, we examine the convergence patterns in sovereign defaults among 101 developing countries for the period from 1990 to 2015. We employ the club convergence algorithm to determine convergence paths across countries and examine the role of institutions in shaping the observed convergence patterns. The merging of clubs reveals three distinct convergent sub‐clubs. Countries in each of these sub‐clubs tend to exhibit a similar pattern of long‐run convergence in cases of sovereign debt default. Countries with better institutions are less likely to belong to a club with greater risks of sovereign defaults by 7% points. Unlike trade openness, levels of external debt, inflation and current account balance increase the probability of default in these economies.

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“…To identify the lending banks, the paper uses information on banks that participate as lead arranger credit or admin agent, arranger, agent, coordinating arranger, mandated lead arranger, lead arranger, mandated arranger, lead bank and lead manager(Ivashina, 2009). 7 A network approach has become relevant in examining financial integration and systemic risk(Anand, Craig, & von Peter, 2015;Bhattacharya, Inekwe, & Valenzuela, 2018;Castrén & Rancan, 2014;Inekwe et al, 2018a;Inekwe, Jin, & Valenzuela, 2018b, 2019.…”

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confidence: 99%

Financial integration and banking crisis. A critical analysis of restrictions on capital flows

Inekwe

Valenzuela²

2019

World Economy

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We investigate the effect of financial integration on a banking crisis. In contrast to existing works, we allow for capital restrictions while studying the impact of financial integration on a banking crisis. Using firm‐level lending and borrowing information in the global market of syndicated loans; we generate aggregate measures of financial integration and examine how countries with capital flow restrictions thrive in the wake of a banking crisis. We concentrate on basic network measures of integration for a panel of 62 countries that allow for capital restriction at any time within the sample period. Financial integration increases the incidence of a banking crisis, and capital restrictions worsen a banking crisis. However, capital restrictions reduce the negative impact of financial integration on the incidence of a banking crisis. Thus, financial integration becomes beneficial when countries allow for some forms of capital control.

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A new approach to financial integration and market income inequality

Cited by 14 publications

References 55 publications

Does Economic Integration Affect Inequality in Developing Countries? Evidence from a Global Sample

Does Economic Integration Affect Inequality in Developing Countries? Evidence from a Global Sample

Convergence in Sovereign Debt Defaults: Quantifying the Roles of Institutions

Financial integration and banking crisis. A critical analysis of restrictions on capital flows

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