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THE SAVING-INVESTMENT GAP AND INCOME INEQUALITY: EVIDENCE FROM 16 COUNTRIES.
- Source :
-
Journal of Developing Areas . Fall2012, Vol. 46 Issue 2, p145-158. 14p. - Publication Year :
- 2012
-
Abstract
- Previous studies that analyzed income inequality mostly concentrated on identifying microeconomic determinants such as income, social factors (family structure, employment, or age distribution), or factor endowments; or such macroeconomic determinants as the exchange rate, economic openness or the black market premium. These studies also relied upon cross-section estimates in their assessments. In this paper, we introduce the "saving-investment" gap, which measures whether the need for financing is unmet, as another determinant of income inequality. We then apply time-series techniques in a study of 16 countries. Using the "bounds testing" cointegration method, in which variables in a given model can be stationary, non-stationary, or a combination of the two, we find varying results across countries. While these results highlight the need for further country-specific research, they indicate the benefits that external financing can provide. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 0022037X
- Volume :
- 46
- Issue :
- 2
- Database :
- Academic Search Index
- Journal :
- Journal of Developing Areas
- Publication Type :
- Academic Journal
- Accession number :
- 76341315
- Full Text :
- https://doi.org/10.1353/jda.2012.0032