Investigating the Impact of Stock Market Liquidity on Income Distribution (Selected from Developing and Developing Countries)

Subject Areas : Journal of Investment Knowledge

zeynab  moridi ¹ (M.A. (economics), Razi University)
shahram  fatahi ² (Associate Professor, Economics Department, Razi University, Kermanshah, Iran.)
Kiomars  Sohaili ³ (Assistant Professor of Razi University.)

Received: 2020-03-10 Accepted : 2022-02-20 Published : 2022-09-23

Keywords: Gini Coefficient, Income Distribution, Panel data, Financial markets development, stock market liquidity,

Abstract :

Fair distribution of income is one of the concerns of policymakers in developing and developed countries, and despite the economic growth of world countries and the implementation of various policies to combat it, remains one of the most important goals of economic policymakers in the world. One of the important and influential factors in any society for econoears. Capital market liquidity enables long-term investment by raising small and large funds and providing them to business owners, so stock market liquidity can be a good platform for attracting micro and large capital by reducing the risk of liquidity.According to macroeconomic theories, capital accumulation resulting from capital market liquidity is one of the conditions for economic growth, thereby increasing the income of those who are risk averse and more willing to invest in the stock market and those who are risk averse. And it relies solely on wages and salaries from work The results show that liquidity of the stock market as a financial market increases income inequality and in developed countries and decreases income inequality and increases in developing countries.

References:

• آل عمران، رویا، شکوهی فرد، سیامک.(1396). "تحلیل اثر توسعه بخش مالی بر شاخص توزیع درآمد". دو فصلنامه علمی- تخصصی پژوهش­های اقتصاد توسعه و برنامه ریزی. شماره دوم. صص 73-43


• سرکانیان،جواد، راعی، رضا، فلاح پور، سعید. (1394)." بررسی رابطه نقدشونگی با بازده سهامدر بازار سهام ایران". چشم انداز مدیریت مالی .شماره11، صص26-9


• طیب نیا، علی، زارعی، عباس و یاری، حمید. (1389). " بررسی تاثیر توسعه مالی بر نابرابری درآمد: مطالعه موردی کشورهای خاورمیانه و شمال آفریقا". مجله سیاست­های اقتصادی نامه مفید. شماره 81. صص.154-137


• زاده فر یحیی، شهاب الدین شمس ولاریمی سید جعفر.(1389)."بررسی رابطه نقدینگی با بازده سهام در بورس اوراق بهادار تهران "، شماره 29، صص128-111 


• عصاری، عباس، ناصری، علیرضا، آقایی خوندایی، مجید (1388). " تاثیر توسعه مالی بر نابرابری درآمد در کشورهای عضو اوپک" پژوهش­های اقتصادی، شماره سه، صص.51-29


• کاظمی، حسین، حیدری، عباس. (1391) "رابطه بین نفدشوندگی سهام و فرصت­های سرمایه­گذاری". فصلنامه علمی پژوهشی دانش مالی تحلیل اوراق بهادار. شماره16. صص.39-29


• یوسفی حاجی آباد، رضا. (1393). " بررسی اثرات توسعه بازارهای مالی بر توزیع درآمد در کشورهای اسلامی". دو فصلنامه پژوهش­های مالیه اسلامی. شماره چهار. صص.90-78


• Agh ion, P., Boulton, P., (1997). A theory of trickle-down growth and developmen t. Rev. Econ. Stud. 64, 151–172.


• Agnieszka (A.P.) Markiewicz. Rafal Raciborski. (2018). Income Inequality and Stock Market Returns. Tinbergen Institute Discussion Paper


• Political Economy Vol.101, pp 274–298.7 - Banerjee, A.V., & Newman, A.F., (1993) Occupational choice and the process of development; Journal of


• Beck, T., Demiraguc-kunt, A. and R. Levin (2007); “Finance, Inequality and Poor”, Journal of Economic Growth, vol.12, no.1.


• Bencivenga, V.R., Smith, B.D., Starr, R.M., (1995). Transactions costs, technological choice, and endogenous growth. J. Econ. Theory 67, 53–177


• Benjamin M. Blau,2018, Income inequality, poverty, and the liquidity of stock markets, Journal of Development Economics 130 (2018) 113–126


• Bumann, S., Lensink, R., (2016). Capital account liberalization and income inequality. J. Int. Money Financ. 61, 143–162.


• Clarke, G., Xu, L.c. and H. Zou (2003), “Finance and Income Inequality: Test of Alternative Theories”, World Bank Policy Research Working Paper, 2984, Washington D.C.


• -Claessens, S., Perotti, E., (2007). Finance and inequality: channels and evidence. J. Comp. Econ. 35, 748–773.


• Demirguc-Kunt, A., Levine, R., (2009). Finance and inequality: theory and evidence. Annu. Rev. Financ. Econ. 1, 287–318.


• Daniel Waldenström. Erik Bengtsson. (2015). Capital Shares and Income inequality: Evidence from the Long Run. IZA DP No. 9581.1-70


• Denk, O., Cournede, B., (2015). Finance and Income Inequality in OECD Countries. OECD. Economics Department Workign Paper 1224, OECD Publishing Paris


• Galor, O., Zeria, J., (1993). Income distribution and macroeconomics. Rev. Econ. Stud. 60, 35–52


• Galor, O., Moav, O., (2004). From physical to human capital accumulation: inequality and. the process of development. Rev. Econ. Stud. 71, 1001–1026


• Golina, Nicholas J. (2018) "An Examination of the Stock Market’s Effect on Economic Inequality," Undergraduate
  Economic Review: Vol. 15 : Iss. 1, Article 7


• Greenwood, J., Jovanovic, B., (1990). Financial development, growth, and the distribution of income. J. Political Econ. 98, 1076–1107


• Jauch, S., Watzka, S., (2012). Financial Development and Income Inequality: a Panel Data Approach. CESifo Worling Papers 3687, CESifo, Munich.


• Kappel, V., (2010). The Effects of Financial Development on Income Inequality an Poverty. CER-ETH Working Paper 10/127, ETH, Zurich d


• King, R.G., Levine, R., (1993). Finance and growth: Schumpeter might Be right. Q. J. Econ108, 717–738.


• McKinnon, R.I., (1973). Money and Capital in Economic Development. Brooking Institution, Washington D.C


• -Maldonado, Joana Elisa (,2017), Financial Systems and Income Inequality Bruges European Economic Research Papers,2-40


• Michael Brei, Giovanni Ferri and Leonardo Gambacorta. (2018). Financial structure and income inequality. BIS Working Papers No 756.1-39


• Mustafa Cem Kirankabeş, Çağatay Başarir, (2012), Stock Market Development and Economic Growth in Developing Countries nternational Research Journal of Finance and Economics. ISSN 1450-2887 Issue 87.134-145


• Stiglitz, J. E. (1985), "Credit Markets and the Control of Capital", Journal of Money, Credit and Banking, Vol. 17, No. 2, PP. 133–52.


• Rajan, R.G., Zingales, L., (1998). Financial dependence and growth. Am. Econ. Rev. 88, 559–586.