Abstract:

This study examines the role of financial development in the BRICS economies over income inequality during the 1990-2014 period. In addition to the indicators of financial development to control internality, the growth rate of the real GDP per person, the human capital index and the share of the modern sector within GDP have been used as a vehicle exchange, and income inequality has been measured by the gene ratio. The empirical results based on the swimming average group (PMG) forecast supports an increase in income inequality hypothesis that claims that financial development in these rising economies does not benefit the low-income groups. In other words, empirical findings show that financial development has increased income inequality over the long term. The policy design of this study is that the existing economic policies must realize the importance of financial access to fighting income inequality in these economies.