The Financial Globalization And Income Inequality Between Countries: Theory And Empirical Research

In the world of the economic globalization era, the role of financial globalizationon income inequality between countries is the subject of study. Since the1980s,countries began to open the capital account. The field of international financialactivities to the surging trend of rapid development. Financial globalization is notonly the most central part of the global economic development, and also at amaximum as a central element of volatility and risk. Financial globalization of capitalon a global scale through financial intermediaries and market liquidity improvecapital efficiency in the use of re-allocation of financial resources. One hand,developing countries in need of financing the necessary capital get the money,andpromote the national economic development; the other hand, financial markets andfinancial systems of developed countries to develop decentralized economicdevelopment risk for the developed countries to provide a channel in the distributionof wealth more benefits. The former has a positive effect on narrowing global incomeinequality, and the latter is a negative role. The impact of global income inequality inthe international financial market unification from the perspective of financialglobalization clearly has important theoretical and practical significance.The paper is divided into six parts.Part one is on the status and significance of financial globalization. Then todistinguish between economic globalization and financial integration and financialglobalization. Further to divide the concept and limits of financial globalization.Part two is about the detailed account of the progress of financial globalizationand income inequality between countries. Income inequality between countries,globalization has brought about theory and research were reviewed and analyzed andevaluated. This derivation for the simple theory behind the ideas and basis. Alsoproposed a framework and ideas of the entire study.Part three descriptive analysis of financial globalization and income inequalitybetween countries. The main feature of financial globalization is the securitization offinancial markets. With the rapid development of offshore markets, the internationalfinancial market performance of the securitization, the traditional loans there was a downward trend, but is still the most important financial financing channels. Financialglobalization has increased the speed of international capital flows, but also increasedthe volatility of the world economy, bringing the risk of economic development. Topromote international financial industry from the division of labor to the trend of themixed competition. International institutional investors, the rapid rise of themicro-manifestations of financial globalization. Through the reconfiguration of theinternational financial resources, changing the previously inherent in the globaleconomy, the distribution of wealth in the form.Part four studies the mechanism correlation between financial globalization andthe income inequality between countries.Using a simple mathematical deduction todraw two inferences: a populations of developed countries accounted for therelationship between the ratio of around the world and global income inequality wasinverted U-shaped; the relationship between financial globalization and global incomeinequality is an inverted U-shaped too. Then the financial globalization is a globalincome inequality direct and indirect channels for analysis.Part five set up four model according to the above inference and purpose. Thefirst two modal is to verify the chapters in the last chapter; the third model to examinethe global financial assets and liabilities, population in developed countries anddeveloped countries account for more than with other countries of the income gapbetween global income inequality long-term return relationship. A fourth model is toanalyze the three independent variable to a global income inequality short-termimpact.Part six is the final conclusion of the study and further research directions.