Abstract

This paper investigates the notion of the financial Kuznets curve in an emerging country—Jordan. Both variants of the financial Kuznets curve (growth financial Kuznets curve and inequality financial Kuznets curve) have been examined using different time series methodologies applying to a sample period from 1993 to 2017. The unobserved components model results provide evidence for both variants of the financial Kuznets curve when using private credit to GDP as a proxy for financial-sector development. Moreover, non-nested model tests suggest that financial intermediaries are relatively more important than stock markets for income inequality. Overall, this paper provides evidence for the financial Kuznets curve in emerging countries. Moreover, it provides new insights for policymakers in Jordan in their challenge to boost economic growth and decelerate income inequality, by reversing the trend towards the concentration of power in the financial sector and creating public-financial institutions that provide affordable credit to small businesses and households.

Details

Title
Is there any financial kuznets curve in Jordan? a structural time series analysis
Author
Khatatbeh, Ibrahim N 1   VIAFID ORCID Logo  ; Wasfi Al Salamat 1 ; Abu-Alfoul, Mohammed N 2 ; Jaber, Jamil J 3 

1  Department of Banking and Financial Sciences, Faculty of Economics and Administrative Sciences, The Hashemite University, Jordan 
2  School of Business, Law, and Entrepreneurship, Swinburne University of Technology, Melbourne, Australia 
3  Department of Finance, The University of Jordan, Aqaba Branch, Jordan 
Publication year
2022
Publication date
Jan 2022
Publisher
Taylor & Francis Ltd.
e-ISSN
23322039
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.1080/23322039.2022.2061103
ProQuest document ID
2770809521
Copyright
© 2022 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. This work is licensed under the Creative Commons Attribution License http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.