The Impact of Islamic Financial Development on Income Inequality in Selected Countries: A Spatial Panel Data Approach

Article Type:
Research/Original Article (دارای رتبه معتبر)

Income inequality has gained prominence by exacerbating the economic stability of both developed and developing countries over the past few decades. The intensity of this issue is non-trivial with economies witnessing failure in policies, indecorous economic governance, and the challenging economic ideologies. Impact of financial development on economic growth is an important channel in economic issues on which plenty of discussions and challenges have arisen. Financial development involves various dimensions of financial systems and markets. Islamic financial development (IFD) is one of these dimensions. This research investigates the impact of IFD on income inequality in 28 countries active in the IFD area, including 14 high-income and 14 middle-income and low-income countries, over 2013-2017 by considering the Kuznets curve hypothesis, financial curve hypothesis, and Kuznets financial hypothesis and through spatial econometrics technique. Results indicate that Islamic financial development (IFD) decreases income inequality. In addition, the findings of the study reveal that there is no clear-cut evidence to support the proposition of economic development along with financial growth, which would reduce the problem of income inequality. The results show that the GDP per capita, Inflation and Trade Openness increase the income inequality. In contrast, General government final consumption expenditure, urban population and age dependency ratio, help countries reduce income inequality.

Quarterly Journal of Applied Economics Studiesin Iran, Volume:11 Issue: 44, 2023
123 to 171  
دانلود و مطالعه متن این مقاله با یکی از روشهای زیر امکان پذیر است:
اشتراک شخصی
با عضویت و پرداخت آنلاین حق اشتراک یک‌ساله به مبلغ 1,390,000ريال می‌توانید 70 عنوان مطلب دانلود کنید!
اشتراک سازمانی
به کتابخانه دانشگاه یا محل کار خود پیشنهاد کنید تا اشتراک سازمانی این پایگاه را برای دسترسی نامحدود همه کاربران به متن مطالب تهیه نمایند!
  • حق عضویت دریافتی صرف حمایت از نشریات عضو و نگهداری، تکمیل و توسعه مگیران می‌شود.
  • پرداخت حق اشتراک و دانلود مقالات اجازه بازنشر آن در سایر رسانه‌های چاپی و دیجیتال را به کاربر نمی‌دهد.
دسترسی سراسری کاربران دانشگاه پیام نور!
اعضای هیئت علمی و دانشجویان دانشگاه پیام نور در سراسر کشور، در صورت ثبت نام با ایمیل دانشگاهی، تا پایان فروردین ماه 1403 به مقالات سایت دسترسی خواهند داشت!
In order to view content subscription is required

Personal subscription
Subscribe for 70 € euros via PayPal and download 70 articles during a year.
Organization subscription
Please contact us to subscribe your university or library for unlimited access!