| Summary: | 碩士 === 淡江大學 === 產業經濟學系碩士班 === 101 === Under the wave of worldwide economic liberalization, financial liberalization has become a major economic instrument to stimulate economic performance. In the 1980s and 1990s, many countries have undergone a series of financial liberalizations and some empirical studies have shown that financial liberalization may promote economic growth. However, it seems that not everyone within the liberalizing countries can equally share the benefits from financial liberalization. With this concern, we use Paioannou and Siourounis’s (2008) difference-in-difference model to further estimate the impact of financial liberalization on income distribution. The financial liberalization indicator we used is a dummy variable constructed based on the dating information of equity market openness from Bekaert et al. (2005). The data used in this study contains 68 countries, with 22 developed countries and 46 developing countries, over the 1980-2004 period. Our main findings are as follows:
1.Regardless in the unconditional or conditional cases, financial liberalization, measured as equity market openness, seems to worsen income distributions.
2.When dividing the sample into advanced and developing countries, we find that financial liberalization will worsen income distribution in developing country group but not developed countries.
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