Income inequality and External Wealth of Nations

Autores
Carrera, Jorge; Montes Rojas, Gabriel Victorio; Panigo, Demian Tupac; Toledo, Fernando
Año de publicación
2024
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
We study the relationship between income inequality and external wealth using dynamic panel data models with 5-years average observations to consider the slow motion of available data in the case of 88 emerging and developing economies for the period 1970–2020. We find evidence of a significant positive association between inequality indicators and net external wealth. This relationship is statistically significant for all income inequality measures and net external wealth variables. If the Top 1 of the richest individuals in a given country increments their share by 1 % point this will produce an average same-year increment in net foreign assets of 0.45 % in terms of the country’s GDP. The long-run effect is more than double in magnitude (1.05 % of GDP). For the Top 10, the long-run effect increases tenfold (11.6 % of GDP). When disaggregated into foreign assets and liabilities, we find a heterogeneous behavior of the financial elites. These findings reveal that financialized elites have a greater propensity to accumulate external wealth than the rest of the population.
Fil: Carrera, Jorge. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina
Fil: Montes Rojas, Gabriel Victorio. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Saavedra 15. Instituto Interdisciplinario de Economía Política de Buenos Aires. Universidad de Buenos Aires. Facultad de Ciencias Económicas. Instituto Interdisciplinario de Economía Política de Buenos Aires; Argentina
Fil: Panigo, Demian Tupac. Universidad Nacional de la Plata. Facultad de Ingenieria. Instituto Malvinas.; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Universidad Nacional de Avellaneda; Argentina
Fil: Toledo, Fernando. Universidad Nacional de La Plata; Argentina
Materia
Income inequality
Net external wealth
Panel data models
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/255586
Acceder
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network_name_str CONICET Digital (CONICET)
spelling Income inequality and External Wealth of NationsCarrera, JorgeMontes Rojas, Gabriel VictorioPanigo, Demian TupacToledo, FernandoIncome inequalityNet external wealthPanel data modelshttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5We study the relationship between income inequality and external wealth using dynamic panel data models with 5-years average observations to consider the slow motion of available data in the case of 88 emerging and developing economies for the period 1970–2020. We find evidence of a significant positive association between inequality indicators and net external wealth. This relationship is statistically significant for all income inequality measures and net external wealth variables. If the Top 1 of the richest individuals in a given country increments their share by 1 % point this will produce an average same-year increment in net foreign assets of 0.45 % in terms of the country’s GDP. The long-run effect is more than double in magnitude (1.05 % of GDP). For the Top 10, the long-run effect increases tenfold (11.6 % of GDP). When disaggregated into foreign assets and liabilities, we find a heterogeneous behavior of the financial elites. These findings reveal that financialized elites have a greater propensity to accumulate external wealth than the rest of the population.Fil: Carrera, Jorge. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; ArgentinaFil: Montes Rojas, Gabriel Victorio. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Saavedra 15. Instituto Interdisciplinario de Economía Política de Buenos Aires. Universidad de Buenos Aires. Facultad de Ciencias Económicas. Instituto Interdisciplinario de Economía Política de Buenos Aires; ArgentinaFil: Panigo, Demian Tupac. Universidad Nacional de la Plata. Facultad de Ingenieria. Instituto Malvinas.; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Universidad Nacional de Avellaneda; ArgentinaFil: Toledo, Fernando. Universidad Nacional de La Plata; ArgentinaDe Gruyter2024-03info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/255586Carrera, Jorge; Montes Rojas, Gabriel Victorio; Panigo, Demian Tupac; Toledo, Fernando; Income inequality and External Wealth of Nations; De Gruyter; Journal of Globalization and Development; 15; 1; 3-2024; 47-622194-63531948-1837CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://www.degruyter.com/document/doi/10.1515/jgd-2023-0042/htmlinfo:eu-repo/semantics/altIdentifier/doi/10.1515/jgd-2023-0042info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-09-03T09:54:13Zoai:ri.conicet.gov.ar:11336/255586instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-09-03 09:54:13.767CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv Income inequality and External Wealth of Nations
title Income inequality and External Wealth of Nations
spellingShingle Income inequality and External Wealth of Nations
Carrera, Jorge
Income inequality
Net external wealth
Panel data models
title_short Income inequality and External Wealth of Nations
title_full Income inequality and External Wealth of Nations
title_fullStr Income inequality and External Wealth of Nations
title_full_unstemmed Income inequality and External Wealth of Nations
title_sort Income inequality and External Wealth of Nations
dc.creator.none.fl_str_mv Carrera, Jorge
Montes Rojas, Gabriel Victorio
Panigo, Demian Tupac
Toledo, Fernando
author Carrera, Jorge
author_facet Carrera, Jorge
Montes Rojas, Gabriel Victorio
Panigo, Demian Tupac
Toledo, Fernando
author_role author
author2 Montes Rojas, Gabriel Victorio
Panigo, Demian Tupac
Toledo, Fernando
author2_role author
author
author
dc.subject.none.fl_str_mv Income inequality
Net external wealth
Panel data models
topic Income inequality
Net external wealth
Panel data models
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv We study the relationship between income inequality and external wealth using dynamic panel data models with 5-years average observations to consider the slow motion of available data in the case of 88 emerging and developing economies for the period 1970–2020. We find evidence of a significant positive association between inequality indicators and net external wealth. This relationship is statistically significant for all income inequality measures and net external wealth variables. If the Top 1 of the richest individuals in a given country increments their share by 1 % point this will produce an average same-year increment in net foreign assets of 0.45 % in terms of the country’s GDP. The long-run effect is more than double in magnitude (1.05 % of GDP). For the Top 10, the long-run effect increases tenfold (11.6 % of GDP). When disaggregated into foreign assets and liabilities, we find a heterogeneous behavior of the financial elites. These findings reveal that financialized elites have a greater propensity to accumulate external wealth than the rest of the population.
Fil: Carrera, Jorge. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina
Fil: Montes Rojas, Gabriel Victorio. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Saavedra 15. Instituto Interdisciplinario de Economía Política de Buenos Aires. Universidad de Buenos Aires. Facultad de Ciencias Económicas. Instituto Interdisciplinario de Economía Política de Buenos Aires; Argentina
Fil: Panigo, Demian Tupac. Universidad Nacional de la Plata. Facultad de Ingenieria. Instituto Malvinas.; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Universidad Nacional de Avellaneda; Argentina
Fil: Toledo, Fernando. Universidad Nacional de La Plata; Argentina
description We study the relationship between income inequality and external wealth using dynamic panel data models with 5-years average observations to consider the slow motion of available data in the case of 88 emerging and developing economies for the period 1970–2020. We find evidence of a significant positive association between inequality indicators and net external wealth. This relationship is statistically significant for all income inequality measures and net external wealth variables. If the Top 1 of the richest individuals in a given country increments their share by 1 % point this will produce an average same-year increment in net foreign assets of 0.45 % in terms of the country’s GDP. The long-run effect is more than double in magnitude (1.05 % of GDP). For the Top 10, the long-run effect increases tenfold (11.6 % of GDP). When disaggregated into foreign assets and liabilities, we find a heterogeneous behavior of the financial elites. These findings reveal that financialized elites have a greater propensity to accumulate external wealth than the rest of the population.
publishDate 2024
dc.date.none.fl_str_mv 2024-03
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/255586
Carrera, Jorge; Montes Rojas, Gabriel Victorio; Panigo, Demian Tupac; Toledo, Fernando; Income inequality and External Wealth of Nations; De Gruyter; Journal of Globalization and Development; 15; 1; 3-2024; 47-62
2194-6353
1948-1837
CONICET Digital
CONICET
url http://hdl.handle.net/11336/255586
identifier_str_mv Carrera, Jorge; Montes Rojas, Gabriel Victorio; Panigo, Demian Tupac; Toledo, Fernando; Income inequality and External Wealth of Nations; De Gruyter; Journal of Globalization and Development; 15; 1; 3-2024; 47-62
2194-6353
1948-1837
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://www.degruyter.com/document/doi/10.1515/jgd-2023-0042/html
info:eu-repo/semantics/altIdentifier/doi/10.1515/jgd-2023-0042
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv De Gruyter
publisher.none.fl_str_mv De Gruyter
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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score 13.13397

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