Impact of Institutional Quality, and Financial Development on Income Inequality
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Date
2021
Authors
AYESHA ASHRAF
Journal Title
Journal ISSN
Volume Title
Publisher
UMT,Lahore
Abstract
The main purpose of the study is to analysis the link institutional quality and financial
development with income inequality in developing economies using the pool Least Squares
(PLS) by via panel data from 1990 to 2018. Here we are using the data of 12 countries. Thesis
also investigates the unfair distribution of income. According to this study, we have taken the
income inequality as dependent variable and institutional quality, financial development as broad
money M2, unemployment, trade openness, external debt and foreign direct investment as
independent variables. Income inequality, external debt, unemployment and broad money these
variables are under dispersed while the other variable is over dispersed like foreign direct
investment. Empirically proves that U-shaped hypothesis for Asian developing countries using
POLS approaches. Panel data estimations show that improvement in financial development
which causes reduction in income inequality. The research estimations prove that the
enhancement in the financial sector. The correlation matrix shows that there is no Multi collinearity among the variables