In this paper, we present empirical evidence that higher income inequality is associated with a greater equity share in countries' external liabilities, and we develop a theoretical model that can explain this observation: In a small open economy with traded and nontraded goods, entry barriers...

The research results on the impact of financial openness on inequality are highly inconsistent. After introducing income share as an indicator of inequality into a theoretical model to replace the typical Gini coefficient, we refute the mainstream conclusion that exogenous variables can explain...

This study investigates the effect of real exchange rate volatility on the distribution of income between labour and capital in South Africa. Both symmetric and asymmetric effects are considered. Using quarterly data for 1985:1-2018:3 and local linear projection, we find that the immediate...