Développement financier et réduction des inégalités de revenus en Côte d’Ivoire : une approche par la régression quantile

KOUAKOU, Thiédjé Gaudens-Omer and KAMALAN, Angbonon Eugène (2025): Développement financier et réduction des inégalités de revenus en Côte d’Ivoire : une approche par la régression quantile.

Abstract

This study assesses the effect of financial development on income inequality in Côte d'Ivoire, using a multidimensional indicator of financial development that incorporates financial inclusion. We use ARDL and quantile regression methods to regress income inequality (measured by the Gini index) on the indicator of financial development and various control variables over the period 1986-2018. The results show that the financial development indicator only reduces income inequality in the short term. In the long term, it increases them at all quantiles, with a more accentuated effect in the upper quantiles than in the lower quantiles. This counter-intuitive result is explained by the lesser orientation of financial inclusion towards income-generating activities. The study recommends the following measures: link financial inclusion and income-generating activities and strengthen platforms aimed at reducing information asymmetry between borrowers and lenders.

• Item Type: MPRA Paper
• English Title: Financial development and reduction of income inequalities in Côte d’Ivoire: a quantile regression approach
• Language: French
• Keywords: Financial development; income inequality; ARDL model; quantile regression.
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; G - Financial Economics > G1 - General Financial Markets > G10 - General

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