The impact of globalization and financial development on India's income inequality

Pradeepta Sethi; Sankalpa Bhattacharjee; Debkumar Chakrabarti; Chhavi Tiwari

doi:10.1016/j.jpolmod.2021.01.002

The impact of globalization and financial development on India's income inequality

Pradeepta Sethi
, Sankalpa Bhattacharjee^*
, Debkumar Chakrabarti
, Chhavi Tiwari

^*Corresponding author for this work

T A Pai Management Institute, Manipal

Research output: Contribution to journal › Article › peer-review

45 Citations (Scopus)

Abstract

This paper empirically examines the combined effects of globalization and financial development on income inequality in a unified framework for an emerging economy. Using annual data for the Indian economy over the period 1980–2014, we show that the perceived benefits of globalization and financial development have not trickled down; rather, has aggravated income inequality. Our results also indicate that while inflation aggravates income inequality, education seems to alleviate the differential effect. Proactive measures in providing access to financial services, creating equitable employment opportunities, and improving the quality of education are required to offset the negative impacts of globalization and financial development on income disparity.

Original language	English
Pages (from-to)	639-656
Number of pages	18
Journal	Journal of Policy Modeling
Volume	43
Issue number	3
DOIs	https://doi.org/10.1016/j.jpolmod.2021.01.002
Publication status	Published - 01-05-2021

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

All Science Journal Classification (ASJC) codes

Economics and Econometrics

Access to Document

10.1016/j.jpolmod.2021.01.002

Cite this

@article{859c945644dd410fa34d9a47decf15b1,

title = "The impact of globalization and financial development on India's income inequality",

abstract = "This paper empirically examines the combined effects of globalization and financial development on income inequality in a unified framework for an emerging economy. Using annual data for the Indian economy over the period 1980–2014, we show that the perceived benefits of globalization and financial development have not trickled down; rather, has aggravated income inequality. Our results also indicate that while inflation aggravates income inequality, education seems to alleviate the differential effect. Proactive measures in providing access to financial services, creating equitable employment opportunities, and improving the quality of education are required to offset the negative impacts of globalization and financial development on income disparity.",

author = "Pradeepta Sethi and Sankalpa Bhattacharjee and Debkumar Chakrabarti and Chhavi Tiwari",

note = "Publisher Copyright: {\textcopyright} 2021 The Society for Policy Modeling",

year = "2021",

month = may,

day = "1",

doi = "10.1016/j.jpolmod.2021.01.002",

language = "English",

volume = "43",

pages = "639--656",

journal = "Journal of Policy Modeling",

issn = "0161-8938",

publisher = "Elsevier B.V.",

number = "3",

}

TY - JOUR

T1 - The impact of globalization and financial development on India's income inequality

AU - Sethi, Pradeepta

AU - Bhattacharjee, Sankalpa

AU - Chakrabarti, Debkumar

AU - Tiwari, Chhavi

PY - 2021/5/1

Y1 - 2021/5/1

N2 - This paper empirically examines the combined effects of globalization and financial development on income inequality in a unified framework for an emerging economy. Using annual data for the Indian economy over the period 1980–2014, we show that the perceived benefits of globalization and financial development have not trickled down; rather, has aggravated income inequality. Our results also indicate that while inflation aggravates income inequality, education seems to alleviate the differential effect. Proactive measures in providing access to financial services, creating equitable employment opportunities, and improving the quality of education are required to offset the negative impacts of globalization and financial development on income disparity.

AB - This paper empirically examines the combined effects of globalization and financial development on income inequality in a unified framework for an emerging economy. Using annual data for the Indian economy over the period 1980–2014, we show that the perceived benefits of globalization and financial development have not trickled down; rather, has aggravated income inequality. Our results also indicate that while inflation aggravates income inequality, education seems to alleviate the differential effect. Proactive measures in providing access to financial services, creating equitable employment opportunities, and improving the quality of education are required to offset the negative impacts of globalization and financial development on income disparity.

UR - https://www.scopus.com/pages/publications/85101329878

UR - https://www.scopus.com/pages/publications/85101329878#tab=citedBy

U2 - 10.1016/j.jpolmod.2021.01.002

DO - 10.1016/j.jpolmod.2021.01.002

M3 - Article

AN - SCOPUS:85101329878

SN - 0161-8938

VL - 43

SP - 639

EP - 656

JO - Journal of Policy Modeling

JF - Journal of Policy Modeling

IS - 3

ER -

The impact of globalization and financial development on India's income inequality

Abstract

UN SDGs

All Science Journal Classification (ASJC) codes

Access to Document

Other files and links

Fingerprint

Cite this