The Effect of Financial Development on Income Inequality in Iran: Structural Vector Auto-Regression Approach
Income distribution is of crucial importance for policymakers from the social justice viewpoint. In recent years, financial tools and intermediaries have been developed in the global economy. Thus, investigating the impact of financial development on the income inequality has attracted the attentio...
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2019-04-01
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| Series: | پژوهشهای اقتصادی |
| Subjects: | |
| Online Access: | http://ecor.modares.ac.ir/article-18-16302-en.pdf |
| _version_ | 1797803233562853376 |
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| author | Mohammad Ali Motafakkerazad Ahmad Assadzadeh mahdi sheykhmaollayi |
| author_facet | Mohammad Ali Motafakkerazad Ahmad Assadzadeh mahdi sheykhmaollayi |
| author_sort | Mohammad Ali Motafakkerazad |
| collection | DOAJ |
| description | Income distribution is of crucial importance for policymakers from the social justice viewpoint. In recent years, financial tools and intermediaries have been developed in the global economy. Thus, investigating the impact of financial development on the income inequality has attracted the attention of economic researchers. Financial development affects income distribution through both channels of economic growth (directly) and increasing access to financial services (indirectly). Many studies have been conducted regarding the effects of financial development on income distribution in Iran with different methods and indicators, and even contradictory results. This study analyzes the effect of financial development on income inequality using various indicators and the structural vector auto-regression (SVAR) approach. The findings confirm the direct effect of financial development on income inequality, or the inequality-narrowing hypothesis, though they have no decisive implication on the indirect effects of financial development on income inequality, or the inequality-broadening hypothesis. |
| first_indexed | 2024-03-13T05:18:45Z |
| format | Article |
| id | doaj.art-f944bcaa48c94a018eab7d5e09fa5a11 |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:18:45Z |
| publishDate | 2019-04-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-f944bcaa48c94a018eab7d5e09fa5a112023-06-15T20:23:37ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322019-04-01191161191The Effect of Financial Development on Income Inequality in Iran: Structural Vector Auto-Regression ApproachMohammad Ali Motafakkerazad0Ahmad Assadzadeh1mahdi sheykhmaollayi2 Faculty of Economics and Management, University of Tabriz Associate Professor of Economics, Faculty of Economics and Management, University of Tabriz Department of Economics, Faculty of Economics, Management & Business, Tabriz University Income distribution is of crucial importance for policymakers from the social justice viewpoint. In recent years, financial tools and intermediaries have been developed in the global economy. Thus, investigating the impact of financial development on the income inequality has attracted the attention of economic researchers. Financial development affects income distribution through both channels of economic growth (directly) and increasing access to financial services (indirectly). Many studies have been conducted regarding the effects of financial development on income distribution in Iran with different methods and indicators, and even contradictory results. This study analyzes the effect of financial development on income inequality using various indicators and the structural vector auto-regression (SVAR) approach. The findings confirm the direct effect of financial development on income inequality, or the inequality-narrowing hypothesis, though they have no decisive implication on the indirect effects of financial development on income inequality, or the inequality-broadening hypothesis.http://ecor.modares.ac.ir/article-18-16302-en.pdffinancial developmentincome inequalityfinancial depthfinancial efficiencystructural vector auto-regression (svar) |
| spellingShingle | Mohammad Ali Motafakkerazad Ahmad Assadzadeh mahdi sheykhmaollayi The Effect of Financial Development on Income Inequality in Iran: Structural Vector Auto-Regression Approach پژوهشهای اقتصادی financial development income inequality financial depth financial efficiency structural vector auto-regression (svar) |
| title | The Effect of Financial Development on Income Inequality in Iran: Structural Vector Auto-Regression Approach |
| title_full | The Effect of Financial Development on Income Inequality in Iran: Structural Vector Auto-Regression Approach |
| title_fullStr | The Effect of Financial Development on Income Inequality in Iran: Structural Vector Auto-Regression Approach |
| title_full_unstemmed | The Effect of Financial Development on Income Inequality in Iran: Structural Vector Auto-Regression Approach |
| title_short | The Effect of Financial Development on Income Inequality in Iran: Structural Vector Auto-Regression Approach |
| title_sort | effect of financial development on income inequality in iran structural vector auto regression approach |
| topic | financial development income inequality financial depth financial efficiency structural vector auto-regression (svar) |
| url | http://ecor.modares.ac.ir/article-18-16302-en.pdf |
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