International Journal of Management, Accounting and Economics
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Volume 3, No. 2, February 2016 Pages: 139 - 146
Investigating the Relationship between Gini Coefficient of Income Strata and Financial Depth in Iran
Nooshin Karimi Alavijeh , Sayyed Abdolmajid Jalaee
Corresponding author:
n[dot]karimi[dot]alavijeh[at]gmail[dot]com
Abstract:
Increasing financial depth is one of the main concerns of policy makers as a prerequisite for economic growth. And since poverty is one of the most important economic and social complications as well as a barrier for reaching financial development, this study tries to investigate the effects of the Gini coefficient, as a poverty measure for income strata, on financial depth during the time period between 1990 and 2011 using combinatorial data analysis. The results of the study show that there is a positive relationship between Gini coefficient in each income stratum and financial depth, which implies that increasing the financial depth does not decrease poverty in each income stratum. Moreover, there is a negative relationship between government expenses and financial depth in Iran. On the other hand, it can be said that increasing the degree of economic openness and inflation have a positive impact on financial depth.
Keywords:
Gini coefficient, financial depth, combinatorial data.
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