A new approach to financial integration and market income inequality

John Nkwoma Inekwe, Yi Jin, Maria Rebecca Valenzuela

Research output: Contribution to journalArticlepeer-review

14 Citations (Scopus)


Using loan contracts of firms in the syndicated loan market, we generate weighted aggregate measures of financial connections of emerging market economies and relate these financial integration indices to income inequality. The results reveal that financial integration is beneficial in reducing market income inequality, but worsens net income inequality. Financial intermediation is detrimental to net income inequality, but beneficial in lowering market income inequality. The results show that independent access to financing has no relationship with income inequality. The results are invariant using alternative income inequality indices and using external instrument against internal instrument in identifying the equations.
Original languageEnglish
Pages (from-to)134-147
Number of pages14
JournalEmerging Markets Review
Early online date2018
Publication statusPublished - Dec 2018


  • Networks
  • Institutions
  • Financial integration
  • Income inequality


Dive into the research topics of 'A new approach to financial integration and market income inequality'. Together they form a unique fingerprint.

Cite this