The effect of financial development in the export sector on income inequality in Iran

Document Type : Original Article


1 PhD Candidate in Economics, Ferdowsi University of Mashhad

2 Ferdowsi University of Mashhad, Faculty of Economic and Administrative Sciences, Associate Professor, Department of Economics


In economic literature, many studies have been done on the relationship between financial development and economic growth. But on the impact of financial market development on income distribution, a few research has been studied, especially, about the relationship between financial development on export sector and income distribution, we didn’t find (Based on Internet searching) any research in Iran and other countries. This paper examines the relationship between financial development on export sector   (largely through the development of export credit agencies) and income distribution in Iran.
The model described in this paper is based on Auto regressive distributed lag model (ARDL). Gini coefficient is used as a measure of income inequality, and the ratio of exports facilities to GDP is used as indicator of financial development on export sector. The results of the estimated model for 1373 to 2010, shows that financial development on export sector, will increase inequality in iran.


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