The impacts of financial development, urbanization, and globalization on income inequality: A regression-based decomposition approach

Wai Choi Lee, Tsun Se Cheong, Yanrui Wu, Jianxin Wu

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

This paper investigates the impacts of financial development, urbanization, and globalization on income inequality in China by applying a regression-based inequality decomposition approach to panel data on Chinese provinces. Provincial data on urbanization and globalization are combined with new data collected from a unique database of financial development in China compiled at the county level. Our findings suggest that financial development, urbanization, and globalization have a positive impact on income. However, our inequality decomposition suggests that financial development may be par ticularly impor tant for promoting inclusive growth, since financial development not only stimulates economic growth but is also found to be a factor that reduces inequality.

Original languageEnglish
Pages (from-to)126-141
Number of pages16
JournalAsian Economic Papers
Volume18
Issue number2
DOIs
Publication statusPublished - 1 Jun 2019

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