Economic inequality over financial cycle in Vietnam

Tóm tắt

The paper investigates the dynamics of economic inequality over the financial cycle in Vietnam using the Hodrick-Prescott decomposition and one timeseries sample from 2000 to 2022. Research results record that economic inequality has a timely switching regime, being lowly correlated with the financial market over 2000-2010 but highly correlated over 2011-2022.
Economic inequality also has a fragmentation in the sense that it is differently correlated with different components of the financial cycle. Combining these two characteristics, economic inequality is closely related to the credit growth rate over 2000-2010, then turns to be more related to the gold price change rate over 2011-2022. This evidence also suggests the employment of a switching regime model to analyze the economic inequality in Vietnam in
future research avenues.