초록

The paper examines the relationship between financial development and income inequality; and also explores if the Greenwood and Jovianvich (GJ) hypothesis applies to Pakistan. Using data from 1971 to 2005, the paper implements the Auto Regressive Distributed Lag (ARDL) bounds testing approach to cointegration to examine the existence of long run relation ships; and the error correction model (ECM) for the short run relationships. Stationarity properties of the series are tested by the ADF unit root test. The findings indicate that financial development reduces income inequality while financial instability aggravates it. Contrary to the conventional wisdom, we find economic growth worsens income distribution and that the latter is deteriorated further by trade openness. The paper does not find support for the GJ relation. Appropriate reforms aimed at developing a well-organized financial sector in Pakistan can help reduce income inequality.

키워드

Financial Development, Income Inequality

참고문헌(94)open

  1. [단행본] Agènor, P.R. / 2003 / Does Globalization Hurt the Poor / World Bank

  2. [학술지] Aghion, P. / 1997 / A Theory of Trickle-Down Growth and Development / Review of Economic Studies 64 : 151 ~ 172

  3. [학술지] Akhter, S. / 2010 / Cross Country Evidence on the Linkages between Financial Development and Poverty / International Journal of Business Management 5 : 1 ~ 19

  4. [보고서] Ang, J.B. / 2009 / Financial Liberalization and Income Inequality

  5. [학술지] Ang, J.B. / 2010 / Finance and Inequality: The Case of India / Southern Economic Journal 76 : 738 ~ 761

  6. [보고서] Ang, J.B. / 2008 / Finance and Inequality: The Case of India

  7. [학술지] Banerjee, A. / 1993 / Occupational Choice and the Process of Development / Journal of Political Economy 101 : 274 ~ 298

  8. [학술지] Barro, R. / 2000 / Inequality and Growth in a Panel of Countries / Journal of Economic Growth 5 : 5 ~ 32

  9. [학술지] Beck, T. / 2007 / Finance, Inequality and the Poor / Journal of Economic Growth 12 : 27 ~ 49

  10. [보고서] Behrman, J.R. / 2001 / Poverty, Inequality, and Trade and Financial Liberalization in Latin America

  11. [보고서] Bensidoun, I. / 2005 / International Trade and Income Distribution: Reconsidering the Eevidence

  12. [학술지] Bhagwati, J. / 2002 / Trade and Poverty in the Poor Count / The American Economic Review 92 : 180 ~ 183

  13. [학술대회] Biswass / 2006 / Trade Openness, Poverty and Inequality in India: Literature and Empirics at the Sub-National Level / International Conference ‘The Indian Economy in the Era of Financial Globalisation,’

  14. [보고서] Bittencourt, M.F. / 2006 / Financial Development and Inequality: Brazil 1985-99

  15. [학술지] Bittencourt, M.F. / 2009 / Financial Development and Inequality: Brazil 1985-99 / The Developing Economies 47 (1) : 30 ~ 52

  16. [학술지] Bittencourt, M.F. / 2010 / Financial Development and Inequality: Brazil 1985-94 / Economic Change and Restructuring 43 : 113 ~ 130

  17. [학술지] Burgess, R. / 2005 / Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment / American Economic Review 178 : 780 ~ 795

  18. [단행본] Calderón, C. / 2003 / Macroeconomic Dimensions of Infrastructure in Latin America / The World Bank

  19. [보고서] Canavire, B. / 2008 / Financial Development and the Distribution of Income in Latin America and the Caribbean

  20. [학술지] Christopoulos, D. / 2004 / Financial Development and Economic Growth: Evidence from Panel Unit Root and Cointegration Tests / Journal of Development Economics 73 : 55 ~ 74

  21. [학술지] Claessens, S. / 2006 / Access to Financial Services: A Review of the Issues and Public Policy Objectives / Journal of Financial Transformation 17 : 16 ~ 19

  22. [보고서] Clarke, G. / 2003 / Finance and Income Inequality: Test of Alternative Theories

  23. [학술지] Clarke, G. / 2007 / Finance and Income Inequality: What Do the Data Tell Us / Southern Economic Journal 72 : 578 ~ 596

  24. [학술지] Cysne, R. / 2004 / Inflation and Income Inequality: A Shopping- Time Approach / Journal of Development Economics 78 : 516 ~ 528

  25. [단행본] David, M. / 2005 / Macroeconomics: Understanding the Wealth of Nations / John Wiley & Sons

  26. [학술지] Demirgüç-Kunt, A. / 2008 / Finance and Economic Opportunistes / Revue d’économie du développement 22 : 5 ~ 29

  27. [학술지] Dickey, D.A. / 1981 / Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root / Econometrica 49 : 1057 ~ 1072

  28. [학술지] Dollar, D. / 2003 / Growth is Good for the Poor / Journal of Economic Growth 7 : 195 ~ 225

  29. [학술지] Easterly, W. / 2001 / Inflation and the Poor / Journal of Money, Credit and Banking 33 : 160 ~ 178

  30. [학술지] Engle, R.F. / 1987 / Cointegration and Error Correction Representation: Estimation and Testing / Econometrica 55 : 251 ~ 276

  31. [학술지] Erosa, A. / 2002 / On Inflation as a Regressive Consumption Tax / Journal of Monetary Economics 49 : 761 ~ 795

  32. [학술지] Feridun, M. / 2010 / Fighting Terrorism: Are Military Measures Effective? Empirical Evidence from Turkey / Defence and Peace Economics 21 : 193 ~ 205

  33. [학술지] Galor, O. / 1993 / Income Distribution and Macroeconomics / Review of Economic Studies 60 : 35 ~ 52

  34. [단행본] Goldsmith, R. / 1969 / Financial Structure and Development / Yale University Press

  35. [단행본] GoP / 2006 / Economic Survey of Pakistan / Finance Ministry of Pakistan

  36. [학술지] Greenwood, J. / 1990 / Financial Development, Growth, and the Distribution of Income / Journal of Political Economy 98 : 1076 ~ 1107

  37. [보고서] Haroon, J. / 2005 / Does Inequality Matter for Poverty Reduction

  38. [학술지] Haug, A. / 2002 / Temporal Aggregation and the Power of Cointegration Tests: A Monte Carlo Study / Oxford Bulletin of Economics and Statistics 64 : 399 ~ 412

  39. [보고서] Jeanneney S.G. / 2005 / Financial Development, Financial Instability and Poverty

  40. [단행본] Jeanneney S.G. / 2006 / Financial Development, Financial Instability and Poverty / University of Auvergne

  41. [학술지] Johansen, S. / 1990 / Maximum Likelihood Estimation and Inference on Cointegration With Applications to the Demand for Money / Oxford Bulletin of Economics and Statistics 52 : 169 ~ 210

  42. [학술지] Johansen, S. / 1991 / Estimation and Hypothesis Testing of Cointegrating Vectors in Gaussian Vector Autoregressive Models / Econometrica 59 : 1551 ~ 1580

  43. [학술지] Johansen, S. / 1992 / Cointegration in Partial Systems and the Efficiency of Single-equation Analysis / Journal of Econometrics 52 : 389 ~ 402

  44. [보고서] Kappel, V. / 2010 / The Effects of Financial Development on Income Inequality and Poverty

  45. [단행본] Khan, A. / 2000 / The Finance and Growth Nexus / Business Review : 3 ~ 14

  46. [학술대회] Khan, M.A. / 2005 / Financial Development and Economic Growth: The Case of Pakistan / Paper Presented at 21ST Annual Meeting & Conference

  47. [학술지] Kim, T-K. / 2004 / Behaviour of Dickey-Fuller unit-root tests under trend misspecification / JOURNAL OF TIME SERIES ANALYSIS 25 (5) : 755 ~ 764

  48. [학술지] King, R.G. / 1993 / Finance and Growth: Schumpeter Might Be Right / Quarterly Journal of Economics 108 : 717 ~ 737

  49. [단행본] Laurenceson, J. / 2003 / Financial Reform and Economic Development in China / Edward Elgar

  50. [학술지] SIONG HOOK LAW / 2009 / THE ROLE OF FINANCIAL DEVELOPMENT ON INCOME INEQUALITY IN MALAYSIA / Journal of Economic Development 34 : 134 ~ 168

  51. [학술지] Lee, C-S. / 2005 / Income Inequality, Democracy, and Public Sector Size / American Sociological Review 70 : 158 ~ 181

  52. [보고서] Levine, R. / 1992 / Financial Structures and Economic Development

  53. [학술지] Levine, R. / 1997 / Financial Development and Economic Growth: Views and Agenda / Journal of Economic Literature 35 : 688 ~ 726

  54. [학술지] Li, H. / 2002 / Inflation, Growth, and Income Distribution: A Cross-Country Study / Journal of Economics and Finance 3 : 85 ~ 101

  55. [보고서] Liang, Z. / 2006 / Financial Development and Income Inequality in Rural China 1991-2000

  56. [보고서] Loayza, N. / 2002 / Financial Development, Financial Fragility, and Growth

  57. [보고서] Loayza, N. / 2005 / Financial Development, Financial Fragility, and Growth

  58. [학술지] Loayza, N. / 2006 / Financial Development, Financial Fragility, and Growth / Journal of Money, Credit and Banking 38 : 1051 ~ 1076

  59. [보고서] Lopez, H. / 2004 / Pro-poor-Pro-growth: Is there a Trade Off

  60. [학술지] Lucas, R.E. / 1987 / Money and Interest in a Cash-in-Advance Economy / Econometrica 55 : 491 ~ 514

  61. [학술지] Ma, Y. / 2008 / Financial Development, Economic Growth and Adaptive Efficiency: A Comparison between China and Pakistan / China &World Economy 16 : 97 ~ 111

  62. [단행본] McKinnon, R.I. / 1973 / Money and Capital in Economic Development / The Brookings Institution

  63. [학술지] Mosley, P. / 1999 / Micro-macro Linkages in Financial Markets: The Impact of Financial Liberalization on Access to Rural Credit in Four African Countries / Journal of International Development 1 : 367 ~ 384

  64. [학술지] Motonishi, T. / 2006 / Why has Income Inequality in Thailand Increased? An Analysis Using Surveys from 1975 to 1998 / Japan and the World Economy 18 : 464 ~ 487

  65. [보고서] Osmani, S.R. / 2005 / The Impact of Globalization on Poverty in Bangladesh

  66. [단행본] Ouattara, B. / 2004 / Foreign Aid and Fiscal Policy in Senegal, mimeo / University of Manchester

  67. [보고서] Pagano, M. / 2001 / The Political Economy of Finance

  68. [학술지] Perotti, R. / 1996 / Growth, Income Distribution and Democracy / Journal of Economic Growth 1 : 149 ~ 187

  69. [학술지] Perron, P. / 1989 / The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis / Econometrica 57 : 1361 ~ 1401

  70. [학술지] Perron, P. / 1997 / Further Evidence on Breaking Trend Functions in Macroeconomic Variables / Journal of Econometrics 80 : 355 ~ 385

  71. [단행본] Pesaran, M.H. / 1997 / Working with Microfit 4.0: Interactive Econometric Analysis / Oxford University Press

  72. [학술지] Pesaran, M.H. / 2001 / Bounds Testing Approaches to the Analysis of Level Relationships / Journal of Applied Econometrics 16 : 289 ~ 326

  73. [학술대회] Pesaran, M.H / 1999 / An Autoregressive Distributed Lag Modeling Approach to Cointegration Analysis / Econometrics and Economic Theory in the 20th Century: The Ragnar Frisch Centennial Symposium

  74. [학술지] Rajan, R. / 2003 / The Great Reversals: The Politics of Financial Development in the Twentieth Century / Journal of Financial Economics 69 : 5 ~ 50

  75. [학술지] Rehman, H. / 2008 / Income Distribution, Growth and Financial Development: A Cross Countries Analysis / Pakistan Economic and Social Review 46 : 1 ~ 16

  76. [학술지] Roine, J. / 2008 / The Long-run Determinants of Inequality: What Can We Learn from Top Income Data / Journal of Public Economics 93 : 974 ~ 988

  77. [단행본] Seddighi, H.R. / 2006 / Applied Econometrics: A Practical Approach / Routledge

  78. [학술지] Shahbaz, M. / 2008 / Foreign Direct Investment and Income Distribution: A Case Study for Pakistan / International Research Journal of Finance and Economics 7 : 7 ~ 18

  79. [학술지] Shahbaz, M. / 2008 / Does Globalization Benefit the Poor? Evidence from Pakistan / Journal of Economic and Social Policy 5 : 9 ~ 27

  80. [학술지] Shahbaz, M. / 2009 / A Reassessment of Finance-Growth Nexus for Pakistan: Under the Investigation of FMOLS and DOLS Techniques / Journal of Applied Economics : 65 ~ 80

  81. [학술지] Shahbaz, M. / 2009 / Financial Performance and Earnings of Poor People: A Case Study of Pakistan / Journal of Yasar University 4 : 2557 ~ 2572

  82. [학술지] Shahbaz, M. / 2008 / Economic Growth and Its Determinants in Pakistan / The Pakistan Development Review 47 : 471 ~ 486

  83. [학술지] Shahbaz, M. / 2007 / An Empirical Investigation of the Relationship between Trade Liberalization and Poverty Reduction: A Case for Pakistan / The Lahore Journal of Economics 12 : 99 ~ 118

  84. [학술지] Shahbaz, M. / 2007 / Rural-Urban Income Inequality under Financial Development and Trade Openness in Pakistan: The Econometeric Evidence / The Pakistan Development Review 46 : 657 ~ 672

  85. [학술지] Shahbaz, M. / 2007 / Trade and Inequality Nexus in Pakistan: Under Investigation of Alternative Techniques / European Journal of Economics, Finance and Administrative Sciences : 57 ~ 72

  86. [학술지] Shahbaz, M. / 2010 / Macroeconomic Environment and Financial Sector’s Performance: Econometric Evidence from Three Traditional Approaches / The IUP Journal of Financial Economics 1 : 103 ~ 123

  87. [학술지] Shahbaz, M. / 2010 / Income Inequality-Economic growth and Non-Linearity: A Case of Pakistan / International Journal of Social Economics 37 : 613 ~ 736

  88. [학술지] Shahbaz, M. / 2010 / Is Inflation Regressive or Progressive? Long Run and Short Run Evidence from Pakistan / International Journal of Management Studies 17 : 43 ~ 67

  89. [학술지] Shan, J. / 2005 / Does Financial Development ‘Lead’ Economic Growth? A Vector Auto-regression Appraisal / Applied Economics 37 : 1353 ~ 1367

  90. [보고서] Shrestha, M. / 2005 / ARDL Modeling Approach to Testing the Financial Liberalization Hypothesis

  91. [보고서] Sturzenegger, F. / 1992 / Inflation and Social Welfare in a Model with Endogenous Financial Adaptation

  92. [보고서] Tan, H-B. / 2009 / Does Financial Deepening Improve Income Distribution? A Dynamic Panel Analysis on Developing Countries

  93. [기타] Wahid, N.M.A. / 2010 / Does Financial Sector Development Increase Income Inequality? Some Econometric Evidence from Bangladesh / Indian Economic Review (upcoming)

  94. [단행본] Westley, G.D. / 2001 / Can Financial Market Policies Reduce Income Inequality / Inter-American Development Bank