The Asian Growth Research Institute (AGI) invites researchers who work on Asia to present their work at AGI seminars. The participation fee is free for these seminars. The seminars are mainly for researchers, but the general public is also welcome to attend.
6 September 2016（Tuesday）, 15：00～17：00
Conference Room, 6th Floor, Asian Growth Research Institute
(Kitakyushu Otemachi Building “Move” 6th Floor, 11-4 Otemachi, Kokurakita-ku, Kitakyushu)
Presentation and Handouts: English
Presenter: Professor Mohammad Masudur Rahman, Zhejiang Agricultural and Forestry University, Hangzhou, China
Title: “Financial Development, Household Income and Urban-Rural Inequality: Evidence from Chinese Economy”
This paper empirically investigates the effect of financial development on Chinese households’ incomes particularly within various income groups using the six provincial data, applying the Quantile Regression model. The empirical study demonstrates that the financial development has a positive but non-linear effect on the annual income of any individual from various income groups at different quantiles. The effect is of inverted U or Kuznets effect indicating that increasing at first and then dropping. As for the distribution of the effects on various income groups, the low-income group is under the greatest influence and then follows the high-income group while the middle-income group is under relatively smaller influence. Findings indicate that promoting the balanced financial development would help to ease Chinese residents’ income gap.