Equity market liberalization, credit constraints and income inequality.

Autor/inn/en	Sun, Puyang; Sen, Somnath; Jin, Shujing
Titel	Equity market liberalization, credit constraints and income inequality.
Quelle	Kiel: Kiel Inst. for the World Economy (2012), 30 S., 470,71 KB PDF als Volltext kostenfreie Datei (1); PDF als Volltext kostenfreie Datei (2); PDF als Volltext kostenfreie Datei (3); PDF als Volltext kostenfreie Datei (4) Link als defekt meldenVerfügbarkeit
Reihe	Economics / Discussion papers. 2012-22
Beigaben	grafische Darstellungen
Sprache	englisch
Dokumenttyp	online; Monographie; Graue Literatur
Schlagwörter	Armut; Einkommensverteilung; Investition; Kapitalmarkt; Regulation; Welt; Aktienmarkt; Bildungsinvestition; Deregulierung; Wirkungsanalyse; Armut; Aktienmarkt; Bildungsinvestition; Einkommensverteilung; Investition; Kapitalmarkt; Arbeitspapier; Deregulierung; Regulation; Welt; Wirkungsanalyse
Abstract	This paper provides compelling evidence that equity market liberalization, the most efficient way to smooth financial market frictions such as credit constraints, can alleviate persistent cross-dynastic income inequality through increasing the accumulation of human capital. We examine the impact of equity market liberalization on inequality by using the data of 72 countries during 1980-2006. The effect is robust to alternative measurements of equity market liberalization. Furthermore, equity market liberalization is associated with the different effects of credit constraints on the persistence of cross-dynastic income inequality. Finally, it is proved that foreign equity flows benefit the initially less active stock markets more than the active ones, which is important evidence that foreign equity flows act as a substitute for the domestic financial market. This finding emphasizes the importance of equity market liberalization for the poor, which helps to reduce inequality.
Erfasst von	ZBW - Leibniz-Informationszentrum Wirtschaft, Kiel
Update	2012/3