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Jaumotte and Buitron. 2015. Inequality and Labor Market Institutions. IMF Staff Discussion Note 15/14.

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Article

Impact of Financial Liberalization on Income Inequality: A PVAR Approach

1Assistant Professor of Economics, Albaha International College of Sciences, Saudi Arabia

2Assistant Professor of Quantitative Methods, Albaha International College of Sciences, Saudi Arabia


International Journal of Econometrics and Financial Management. 2019, Vol. 7 No. 1, 1-11
DOI: 10.12691/ijefm-7-1-1
Copyright © 2019 Science and Education Publishing

Cite this paper:
Chokri Zehri, Hamadi Ben Abid. Impact of Financial Liberalization on Income Inequality: A PVAR Approach. International Journal of Econometrics and Financial Management. 2019; 7(1):1-11. doi: 10.12691/ijefm-7-1-1.

Correspondence to: Chokri  Zehri, Assistant Professor of Economics, Albaha International College of Sciences, Saudi Arabia. Email: zehric@yahoo.fr

Abstract

We estimate a panel vector autoregressive model (PVAR) to study the impact of financial liberalization on income inequality. The analysis is carried out for 162 countries over the period 1980-2015. The results show that capital account liberalization and financial development increase inequality. However, it change according to the category of income countries (low, middle and high-income) and according to the period of study used (before and after 1990). The shocks caused by the indicators of financial liberalization on income inequality are very low but persistent in time.

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