Document Type : ORIGINAL ARTICLE

Authors

• Nasim Jaberi Khosroshahi ¹
• Mohammad Reza Mohamadvand Nahidi ²
• Davood Noroozi ³

¹ MA in Economics, Oskoo Azad University

² Associate Professor of Economics, Tabriz Azad University

³ MA in Industrial Management, Bonab Azad University

Abstract

Income distribution is one of the policymakers concerns. So it is important to investigate its determinants. Considering that financial development is one of the effective factors on income distribution, we decide to investigate its effect on income distribution during 1973-2008 using Autoregressive Distributed Lags (ARDL). Results show that the relationship between financial development and Gini coefficient is positive and reducing so support the Green-Jovanovic (1990) hypothesis. The relationship between GDP per capita and Gini coefficient is positive and reducing too. Also human capital has negative and significant impact and inflation has positive and significant impact on Gini coefficient. CUSUM and CUSUMSQ structural stability tests show that the estimated coefficients are stable over the studying period.

Keywords

• financial development
• Income Distribution
• Gini Coefficient
• ARDL