Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230258
Authors: 
Li, Xiang
Su, Dan
Year of Publication: 
2020
Citation: 
[Journal:] Oxford Bulletin of Economics and Statistics [ISSN:] 1468-0084 [Volume:] [Issue:] [Pages:] n/a-n/a
Abstract: 
By adopting an identification strategy of difference‐in‐difference estimation combined with propensity score matching between liberalized and closed countries, this paper provides robust evidence that opening the capital account is associated with an increase in income inequality in developing countries. Specifically, capital account liberalization, in the long run, is associated with a reduction in the income share of the poorest half by 2.66–3.79% points and an increase in that of the richest 10% by 5.19–8.76% points. Moreover, directions and categories of capital account liberalization matter. The relationship is more pronounced when liberalizing inward and equity capital flows.
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Document Version: 
Published Version

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