Does Income Inequality Affect Capital Flows? Evidence from Emerging Markets and Developing Economies

We assess the effect of income inequality on capital flows. We differentiate between aggregate capital inflows (external liabilities accumulation) and outflows (external assets accumulation) and disaggregated public and private capital inflows and outflows. We estimate dynamic panel data models usin...

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Detalles Bibliográficos
Autores principales: Montes-Rojas, Gabriel, Carrera, Jorge, Solla, Mariquena, Toledo, Fernando
Formato: Artículo publishedVersion
Lenguaje:Español
Publicado: Instituto Interdisciplinario de Economía Política (IIEP UBA-CONICET) 2023
Materias:
Desigualdad
Flujos de capitales
Apertura financiera
Datos en panel
Income Inequality
Capital Flows
Financial Openness
Panel Data Models
Acceso en línea:https://ojs.economicas.uba.ar/DT-IIEP/article/view/2907
https://repositoriouba.sisbi.uba.ar/gsdl/cgi-bin/library.cgi?a=d&c=dociiep&d=2907_oai
Aporte de:
Repositorio Digital de la Universidad de Buenos Aires (UBA) de Universidad de Buenos Aires
Descripción
Sumario:We assess the effect of income inequality on capital flows. We differentiate between aggregate capital inflows (external liabilities accumulation) and outflows (external assets accumulation) and disaggregated public and private capital inflows and outflows. We estimate dynamic panel data models using annual observations for Emerging Markets and Developing Economies during the 1999-2019 period. We find that the Top 1 and the Top 10 inequality measures are positive and statistically significant for aggregate and private inflows, and the Gini disposable income is statistically significant only for one explored method. The evidence also shows that there is a weak effect on private outflows, robust across methods only at the aggregate specification. The results also suggest that financial openness is positively associated with a greater effect of inequality.

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