FINANCIAL DEVELOPMENT AND INCOME INEQUALITY: VIETNAM’S EMPIRICAL RESEARCH ON ARDL MODEL

Abstract

The paper conducts an empirical investigation to examine whether there is a linkage between financial development and income disparity or not. Final results withdrawn from the ARDL model, which is employed to deal with Vietnam’s national-level time series data from 1992 to 2021, reveal that the influence of financial development on income inequality depends on the specific measure used to capture its multidimensional aspects. On the basis of research findings, the authors would like to propose some policy implications to Vietnam’s government to take advantages of financial growth to address unequal distribution in income in Vietnam.