Income inequality
Mirnaser Mirbagheri Hir; siyamak shokohifard
Volume 7, Issue 25 , November 2016, , Pages 97-112
Abstract
The aim of this study is to evaluate the effect of financial development on income inequality and poverty in selected Islamic countries. The selected countries include: Iran, Indonesia, Jordan, Kuwait, Malaysia, Egypt, Morocco, Oman, Saudi Arabia, Senegal, Turkey, the United Arab Emirates, Qatar and ...
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The aim of this study is to evaluate the effect of financial development on income inequality and poverty in selected Islamic countries. The selected countries include: Iran, Indonesia, Jordan, Kuwait, Malaysia, Egypt, Morocco, Oman, Saudi Arabia, Senegal, Turkey, the United Arab Emirates, Qatar and Libya. This study used the combined data methods to test the research hypotheses during the period 2000-2014. According to survey results, the coefficient of financial development in the Gini coefficient equation (-0.068) shows that financial sector development in Islamic countries has reduced income inequality. The effect of financial development on poverty is positive and significant at 5% level. Based on these results a percentage increase in the index of financial development, will lead to increased consumption per capita cost at 0.4 percent and reduce poverty in Islamic countries.
