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  • Takuma Kunieda (a1), Keisuke Okada (a2) and Akihisa Shibata (a3)


This research demonstrates that international financial integration changes the way in which financial development affects inequality within a country. Specifically, both cross-country analysis and dynamic panel data analysis using data collected from more than 100 countries provide evidence indicating that if the financial market of a country is strongly closed to the world market, financial development narrows inequality within that country, whereas if the financial market of a country is strongly open to the world market, financial development widens inequality within that country. Our theoretical framework provides a possible explanation for our empirical findings.


Corresponding author

Address correspondence to: Takuma Kunieda, Department of Economics and Finance, City University of Hong Kong, P7315, Academic Building, 83 Tat Chee Avenue, Kowloon Tong, Hong Kong; e-mail:


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