Abstract
The equitable distribution of income is a very important problem in the economies of the past and present. In this sense, this study aims to investigate the relationship between financial inclusion and income inequality in the fragile five countries (Colombia, Mexico, South Africa, Turkey, Indonesia). For this purpose, a comprehensive index of financial inclusion was constructed for the Fragile Five Countries. A panel data set from 2005 to 2008 was used for the study. The econometric methods used are Principal Component Analysis (PCA), Parks-Kmenta Estimator and Dumitrescu and Hurlin Panel Granger Causality test. The results show that there is a negative relationship between financial inclusion and income inequality. There is a statistically significant “inverse-U” shaped relationship between GDP per capita and income inequality in the fragile five countries. However, there is a statistically significant and negative relationship between internet usage and income inequality. In this regard, the findings of this study imply that fair growth and financial inclusion together help to reduce income inequality.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
