Title: A financial Kuznets curve in the transitional economy: The tale of China
Authors: Chi-Yang Chu - National Taipei University (Taiwan) [presenting]
Mingming Jiang - Shandong University (China)
Abstract: Using manually collected grouped income data for urban households, different measures of income inequality are constructed for 30 Chinese provinces in the past three decades and the nonlinear impacts of financial depth on income distribution is quantified by using a partially linear semi-parametric panel data model. The estimates suggest a robust and inverted-U shaped relation between financial depth and income inequality, i.e., a financial Kuznets curve arises during the transition of Chinese economy. We find the marginal impacts of financial depth are affected by a couple of factors, including human capital, housing price, economic ownership, economic development, and initial inequality.