The Research On The Impact Of Financial Opening On Income Gap

Since the collapse of Bretton Woods system,economic globalization has become the trend and trend of world economic development,and the degree of international financial openness has also been deepened.At present,financial opening has been an important topic in the reform of financial system in most countries.The government hopes to promote economic growth,improve financial efficiency,optimize financial allocation and achieve macroeconomic objectives through financial opening.However,the significant acceleration of the financial opening process has expanded the possibility of systemic risks due to factors such as global imbalances and debt accumulation.When a country’s financial opening order is improper or insufficient support,it is more likely to lead to macroeconomic fluctuations,and even global financial crisis.The economic fluctuation and risk transfer brought by financial opening to a country will also produce the problem of income gap.For a long time,the global income gap has always been a hot topic concerned by various international institutions and economists at home and abroad.Therefore,we should deeply analyze the impact of financial opening on the income gap,clarify the mechanism of the two,and explore their differences under the characteristics of different countries,It has important theoretical and practical significance for alleviating the continuous expansion of income gap in the process of financial opening.Based on the systematic review of the existing literature,this paper makes a theoretical analysis on the mechanism of the impact of financial opening on income gap according to Mc Dougall model and financial liberalization theory,and puts forward research hypotheses.On this basis,by integrating the panel data of 80 countries from 1980 to 2018,this paper uses the intermediary effect model to investigate the impact of financial opening on income gap and its mechanism.The empirical results show that: first,the increase of financial openness will significantly aggravate the income gap.Second,financial openness improves the pattern of income distribution by improving the level of financial development and financial inclusiveness.At the same time,it also worsens the income gap by causing the financial crisis.Third,when countries or regions have different levels of economic development,exchange rate flexibility and system quality,the impact of financial opening on income gap is also different.Based on the theoretical analysis and empirical test results,this paper puts forward relevant policy suggestions from the perspective of adhering to the principle of orderly and gradual financial opening and strengthening financial risk management,and provides an important reference for countries to alleviate the income gap in the process of promoting financial openin.