Abstract
The present study analyzes the impact of financial sector development,
institutional quality and energy prices on income inequality using panel data for
12 Asian developing countries for the time period 1990-2015. Fully Modified OLS
has been applied to determine the long run relationship among the variables. The
results of the study suggest that institutions affect income inequality positively,
which means with the enhancement of institutions the inequality rises. Financial
development and income distribution also have positive and significant
relationship. The coefficient of energy prices is positively related to income
inequality. The study concludes that the role of institutions in income inequality is
highly important and the impact of financial development on poor class of the
society is significant. This calls for appropriate measures to monitor the energy
prices. The study suggests that the role of government in reducing income
inequality is indispensable and government should invest in health, education and
worker’s training for improving the standard of living of the poor.
Nabila Asgher, Hafeez ur Rehman, Aman Mumtaz. (2018) Impact of Institutional Quality, Energy Prices and Financial Development on Income Inequality: Evidence from Selected Asian Countries, Journal of the Research Society of Pakistan, Volume 55, Issue 1.
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