Study the Effect of Financial Markets Development on Income Distribution in Islamic Countries

This paper examines the relations and financial market development on income distribution in Islamic countries at period of 2000-2012. The intended type in this article is Data Panel. The experimental results of this study is confirmed the significant and positive relationship the variable of income inequality financial development in Islamic countries and also, square of financial development is negative. The adequate evidence is being to confirm the existence of Greenwood and Jovanovich (1990) inverted-U-shaped non-linear relationship between financial development and income inequality in these countries. Proportion of loans in base of Islamic contracts are positive effect on income distribution. Also, human capital development and per capita GDP has negative effect and inflation has positive effect on income distribution inequality in the studied countries.