IDEAS home Printed from https://ideas.repec.org/a/taf/glecrv/v53y2024i4p283-303.html
   My bibliography  Save this article

Too Much Finance and Top-Income Concentration: A Dynamic Panel Data Analysis

Author

Listed:
  • Md Abu Bakkar Siddique
  • Kang-Kook Lee

Abstract

This study investigates the effect of financial development on top-income concentration and income inequality. We conduct a dynamic panel estimation using the GMM method for 138 countries including developed and developing economies from 1970 TO –2017. We find that financial development has a nonlinear U-shaped effect on the top 1% and top 10% income shares and Gini coefficients. Private credit reduces inequality when it is under a threshold value, while it raises income inequality above the threshold value. This suggests that too much finance is beneficial only for the top-income group, but detrimental to income distribution for the entire population.

Suggested Citation

  • Md Abu Bakkar Siddique & Kang-Kook Lee, 2024. "Too Much Finance and Top-Income Concentration: A Dynamic Panel Data Analysis," Global Economic Review, Taylor & Francis Journals, vol. 53(4), pages 283-303, October.
    • Handle: RePEc:taf:glecrv:v:53:y:2024:i:4:p:283-303
    DOI: 10.1080/1226508X.2024.2449149
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1226508X.2024.2449149
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1226508X.2024.2449149?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:glecrv:v:53:y:2024:i:4:p:283-303. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RGER20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.