## Financial Development, Inequality and Poverty: Some International Evidence

_IMF Working Papers, February 19, 2016_

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## Bibliographic details
- Authors: RuiXin Zhang
- Published: February 19, 2016
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498359283.001

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### Summary and main findings
- The paper examines the link between financial development and income distribution across several dimensions: financial access, efficiency, stability, and liberalization.
- Each dimension is represented by two indicators: one related to financial institutions and the other to financial markets.
- Using a sample of 143 countries from 1961 to 2011, the paper finds that four of the five dimensions of financial development can significantly reduce income inequality and poverty; financial liberalization is the exception and tends to exacerbate inequality and poverty.
- Banking sector development tends to provide a more significant impact on changing income distribution than stock market development.

### Methodology and data
- Sample: 143 countries.
- Time period: 1961 to 2011.
- Dimensions analyzed: financial access, efficiency, stability, liberalization (each with one institutions indicator and one markets indicator).

### Key statistics and publication metadata
- Pages: 28
- Volume: 2016
- Issue: 032
- Series: Working Paper No. 2016/032
- DOI: https://doi.org/10.5089/9781498359283.001
- Stock No: WPIEA2016032
- ISBN: 9781498359283
- ISSN: 1018-5941
- Author: RuiXin Zhang
- Publication date: February 19, 2016

### Policy implications and recommendations
- Findings are consistent with the view that macroeconomic stability and reforms are needed to ensure financial development and liberalization support reductions in poverty and income inequality.
- Specific reform areas highlighted:
  - Strengthening creditor rights.
  - Improving contract enforcement.
  - Enhancing financial institution regulation.

### Subjects and keywords
- Subject: Financial sector development, Income distribution, Income inequality, Poverty, Stock markets
- Keywords: income, price index, WP

*Source: IMF Working Papers — "Financial Development, Inequality and Poverty: Some International Evidence" by RuiXin Zhang (February 19, 2016).*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/financial-development-inequality-and-poverty-some-international-evidence-43718_