Finance and Inequality: The Case of India

Ang, James B.

doi:10.4284/sej.2010.76.3.738

Cited by 202 publications

(158 citation statements)

References 63 publications

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“…Indeed, the increase in GDP per capita, implicitly stemming from an increase in wages, leads to a reduction in income inequalities. Finally, the result regarding financial liberalization is in line with the outcomes obtained by Rajan and Zingales (2003) and by Ang (2010), the last investigating the case of India in a co-integration framework.…”

Section: Resultssupporting

confidence: 72%

Technological change, rent and income inequalities: A Schumpeterian approach

Antonelli

Gehringer

2017

Technological Forecasting and Social Change

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Increasing levels of income inequality have recently attracted much attention. The literature has concentrated on the hypothesis that increasing levels of income inequality are the cause of slow growth and social unbalances. This paper contributes to exploring an alternative hypothesis according to which increasing levels of income inequality are the consequence, rather than the cause, of slow growth and more specifically of the slowing pace of technological change. The paper articulates the Schumpeterian hypothesis that the rate of technological change exerts a significant influence in reducing income distribution. Due to the powerful effects of creative destruction, the rate of technological change engenders a reduction in wealth and rent inequalities that are highly skewed and, consequently, limits income inequality. We test this hypothesis in an empirical exercise by implementing quantile regressions on a large dataset of advanced and industrializing economies. The inequality diminishing effect of technological change holds along the entire income inequality distribution, but exhibits larger effects in countries where the concentration of wealth and, consequently, income asymmetries are stronger. These results have novel welfare implications and suggest some crucial insights for economic policy analysis.

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Section: Resultssupporting

confidence: 72%

Technological change, rent and income inequalities: A Schumpeterian approach

Antonelli

Gehringer

2017

Technological Forecasting and Social Change

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“…They find that branch expansion in rural India led to faster growth of non-agricultural output, growth of agricultural wages, and decline in poverty in states that started the period with a lower level of financial sector development. Ang (2008) shows that income inequality in India decreases as the financial system deepens and broadens.…”

Section: B Evidence From Country-specific Studies and Impact Evaluatmentioning

confidence: 99%

Financial Sector Development, Economic Growth, and Poverty Reduction: A Literature Review

Zhuang¹,

Gunatilake

Niimi

et al. 2009

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The views expressed in this paper are those of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank. Terms of use: Documents inThe ADB Economics Working Paper Series is a forum for stimulating discussion and eliciting feedback on ongoing and recently completed research and policy studies undertaken by the Asian Development Bank (ADB) staff, consultants, or resource persons. The series deals with key economic and development problems, particularly those facing the Asia and Pacific region; as well as conceptual, analytical, or methodological issues relating to project/program economic analysis, and statistical data and measurement. The series aims to enhance the knowledge on Asia's development and policy challenges; strengthen analytical rigor and quality of ADB's country partnership strategies, and its subregional and country operations; and improve the quality and availability of statistical data and development indicators for monitoring development effectiveness.

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“…Development of the banking sector and the stock market were highly correlated with the economic development and both sectors exerted an important impact on development of a country (Beck et al2000). Further, the financial sector played a very important role in mobilizing and better utilization of saving (Ang, 2008). Financial sector utilized these resources to increase capital formation through the provision of a wide range of financial tools to meet different requirements of borrowers and lenders.…”

Section: Introductionmentioning

confidence: 99%

“…A positive long-run effect was found of financial intermediation on output growth. Ang (2008) attempted to analyze the role of financial sector development and liberalization on the income inequalities in India. Khan and Qayyum (2004) and Shahbaz et al (2008) investigated the impact of trade and financial development on economic growth in Pakistan.…”

Section: Introductionmentioning

confidence: 99%

Relationship between Financial Sector Development and Sustainable Economic Development: Time Series Analysis from Pakistan

Anwar¹,

Ghulam²,

Hussain³

2011

IJEF

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The study empirically investigated the contribution of financial sector in sustainable economic development of Pakistan. Annual data were used from the period of 1973 to 2007. Main objectives were to analyze the long run relationship between financial sector development and sustainable economic development along with direction of causality between both. Auto Regressive Distributed Lag (ARDL) bound testing technique for cointegration was applied to estimate the long run relationship. A stable long run relationship was found between financial sector indicators and the sustainable economic development. Error Correction coefficient was statistically significant. It was concluded that financial sector had positive impact on the sustainable economic development in short run as well as in the long run. Causality test revealed that financial sector development was the basis for economic development.

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Finance and Inequality: The Case of India

Cited by 202 publications

References 63 publications

Technological change, rent and income inequalities: A Schumpeterian approach

Technological change, rent and income inequalities: A Schumpeterian approach

Financial Sector Development, Economic Growth, and Poverty Reduction: A Literature Review

Relationship between Financial Sector Development and Sustainable Economic Development: Time Series Analysis from Pakistan

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