Temporal Effects of Financial Globalization on Income Inequality

Causality Linkages Between Income Inequality and Financial Globalization for G7 Countries

“…Financial globalization has induced income inequality in these countries. These results are consistent with Das and Mohapatra (2003), Lee (2006), Elmawazini et al (2013), Jaumotte et al (2013), Asteriou et al (2014), Kang-Kook (2014), Daisaka et al (2014), Bukhari and Munir (2016), Cabral et al (2016), De Haan andSturm (2017), Khan et al (2019), Furceri et al (2019, Akbakay and Barak (2020), Çelik (2021), unlike Agnello et al (2012), Bumann and Lensink (2016), Lee et al (2019). Part B shows the results of the Granger causality running from income inequality to financial globalization.…”

“…As is seen in Table 1, the natural logarithmic forms of all variables are used in the analysis. Bergh & Nilsson, 2010;Kunieda et al, 2014;De Haan & Sturm, 2017;Dorn et al, 2018;Furceri & Loungani, 2018;Furceri et al, 2019;Akbakay & Barak, 2020), World Income Inequality Database (WIID hereafter, see Bukhari & Munir, 2016), World Bank (see Elmawazini et al, 2013;Jaumotte et al, 2013;Khan et al, 2019), EUROSTAT-SILC (see Asterio et al, 2014), and OECD (see Baek & Shi, 2016). In this study, SWIID 8.2 version is preferred compared to WIID database (see De Haan and Sturm (2017) for advantages of using SWIID database).…”

“…This database Many researchers evaluate whether there is an impact of financial globalization on income inequality. Many researchers evidence that financial globalization widens income inequality (e.g., Das & Mohapatra, 2003;Lee, 2006;Elmawazini et al, 2013;Jaumotte et al, 2013;Asteriou et al, 2014;Kang-Kook, 2014;Daisaka et al, 2014;Bukhari & Munir, 2016;Cabral et al, 2016;De Haan & Sturm, 2017;Khan et al, 2019;Furceri et al, 2019;Akbakay & Barak, 2020), while a few researchers conclude that financial globalization decreases income inequality (e.g. Agnello et al, 2012;Bumann & Lensink, 2016;Lee et al, 2019).…”

“…Researchers have great difficulty in accessing the data regarding income inequality. They have generally obtained from the databases such as Standardized World Income Inequality (SWIID hereafter, see Bergh & Nilsson, 2010;Kunieda et al, 2014;De Haan & Sturm, 2017;Dorn et al, 2018;Furceri & Loungani, 2018;Furceri et al, 2019;Akbakay & Barak, 2020), World Income Inequality Database (WIID hereafter, see Bukhari & Munir, 2016), World Bank (see Elmawazini et al, 2013;Jaumotte et al, 2013;Khan et al, 2019), EUROSTAT-SILC (see Asterio et al, 2014), and OECD (see Baek & Shi, 2016). In this study, SWIID 8.2 version is preferred compared to WIID database (see De Haan and Sturm (2017) for advantages of using SWIID database).…”

“…In this study, the panel dataset covering the period 1970-201 extended, as income inequality can be accessed till 2015 for Japan. Table 1, the natural logarithmic forms of all variables are used in the (S et al, 2014;De Haan & Sturm, 2017;Dorn et al, 2018;Furceri & Barak, 2020), World Income Inequality Database (WIID hereafte Elmawazini et al, 2013;Jaumotte et al, 2013;Khan et al, 2019) OECD (see Baek & Shi, 2016). In this study, SWIID 8.2 version is and Sturm (2017) for advantages of using SWIID database).…”