How is Financial Market Liberalization Influencing Income Inequality?: Is the Matthew-effect supported by Financial Market Liberalization?

Daniel Jägers

2023年1月 · GRIN Verlag

关于此电子书

Diploma Thesis from the year 2012 in the subject Politics - General and Theories of International Politics, grade: 1,0, , course: Maastricht Graduate School of Governance, language: English, abstract: Observing an increasing financial liberalization and income inequality during the last decades, this study investigates how the opening of financial markets is influencing income inequality. Operationalizing the research question, it focuses on capital account liberalization (CAL). The paper begins with an extensive literature review which recognizes the importance of a countries institutional quality and derives the following two hypotheses: CAL generally increases income inequality and CAL leads to an especially high increase in income inequality if the institutional quality is low. These hypotheses are empirically tested based on a panel data set covering 159 countries from 1996 – 2009. In the last decades the economies and financial systems of many countries liberalized and integrated with each other in order to benefit economically. However, at the same time income inequality and the gap between the extreme poor and the rich increased. The European Union is one of the regions with the most remarkable development regarding financial liberalization and integration. Some countries have been transformed within the last 25 years from centrally planned economies with controlled financial markets to market economies with open financial markets, integrated within the European Monetary Union. On the one hand this financial liberalization and integration is argued to be an important reason for economic growth. However, on the other hand it is strongly related to the Euro currency crises which is currently the main challenge facing the EU and is discussed daily on the news. The lower- and middle-classes in particular are protesting against immense financial supports for banks and investors on the one side and wage reductions, unemployment and social benefit cuts on the other. Can these inequalities be explained by the increasing liberalization of financial markets? Are they logical consequences of international financial liberalization and integration? This paper approaches these questions on a meta-level by answering the research question: How is Financial Market Liberalization Influencing Income Inequality? Before elaborating on this research question and explaining the investigated hypotheses it is explained what exactly is meant by financial market liberalization.

作者简介

Daniel Jägers ist in NRW und Hawaii zur Schule gegangen. Er hat in den Niederlanden (Maastricht University) und Frankreich (Ecole Supérieure de Commerce de Grenoble) International Business Economics studiert. Anschließend arbeitete er als GEBB-Berater für die Bundeswehr/Bundesverteidigungsministerium im Bereich Controlling/Bürokratieabbau und als Projektleiter zur Unterstützung christlicher erlebnispädagogischer Jungschargruppen und Sommerlager im osteuropäischen Ausland. Mit dem Ziel sein soziales Engagement mit seinem wirtschaftlichen Interesse zu verbinden studierte er Public Policy and Human Development und erhielt 2012 seinen M.Sc.-Abschluss von der Maastricht Graduate School of Governance und der United Nations University - MERIT. Im Anschluss wechselte er zum Evangelischen Werk für Diakonie und Entwicklung (Zusammenschluss des Diakonischen Werkes der EKD mit Brot für die Welt sowie dem Evangelischen Entwicklungsdienst) und war dort für den Aufbau einer Innenrevision verantwortlich. Seit 2017 leitet er die erlebnispädagogische Arbeit des CVJM Aktivzentrum am Hintersee im Berchtesgadener Land, wo er Glaube, Bergsport und Erlebnispädagogik miteinander verbindet und 2019 die DAV-Sektion Gipfelkreuz gegründet hat. Aktuell studiert er berufsbegleitend Theologie an der Universität in Greifswald.