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This paper analyses patterns in regional inequality within and between Malaysia's 14 states, drawing upon estimates of Kuznets/Williamson curves, σ- and β-convergence and spatial spillovers. The path of regional inequality contradicts Kuznets predictions. Regional inequality initially fell but has subsequently risen with further economic development. While Malaysian governments have been successful at reducing poverty, they have been unable to curtail regional inequality in the long run. [ABSTRACT FROM AUTHOR]

The objective of this paper is to examine whether bank and stock market development contributes to reducing income inequality and poverty in emerging countries. Using dynamic panel data methods with an updated dataset for the period 1987–2011, we assess the finance–inequality–poverty nexus by taking the separate and simultaneous impacts of banks and stock markets into account. Mixed explanatory findings on panel studies suggest that although financial development promotes economic growth, this does not necessarily benefit those on low-incomes in emerging countries. For the finance–poverty link, we find that neither banks nor stock markets play a significant role in poverty reduction. [ABSTRACT FROM AUTHOR]