| As China’s development enters a new era,the main contradiction facing the people’s growing need for a better life and the contradiction between unbalanced and inadequate development,the 20th Party Congress report proposed that efforts should be made to promote the common prosperity of all people,while pointing out that the next five years to basically form a new system of higher level open economy.On the one hand,the pace of opening up China’s financial sector to the outside world has accelerated in recent years,with a significant relaxation of market access in the financial services industry and the removal of restrictions on the proportion of foreign ownership in various sub-sectors.On the other hand,China has continued to make efforts in regulating income distribution and promoting common prosperity.In terms of Gini coefficient,despite the overall downward trend in recent years,the Gini coefficient of national residents’ income is still high,and the disparity between urban and rural areas,between different regions and between different income levels is still large.And from the future trend,some new problems and contradictions in the field of income distribution will continue to arise due to globalization,technological changes and changes in production and transaction methods.Under the new environment,will further deepening the opening up of the financial sector have an impact on the pattern of income distribution?What aspects will we pay attention to and where will we focus to regulate the income distribution in the process of further deepening?These are the questions that deserve attention now.Therefore,this paper examines the impact and mechanism of financial liberalization on income disparity in the international context,and provides empirical references for the problems that we will face.This paper explores the impact of financial openness on income disparities in a global context.It aims to investigate in what direction,to what extent,and through which channels financial openness has an impact on income disparity.The article differs from existing studies in two main aspects:first,it investigates the impact of financial openness on the income shares of different groups from the perspective of income distribution structure;second,it adopts different ideas to explore the mechanisms of financial openness on income disparity.The main contents of this paper are:first,to clarify the conceptual definition and measurement of financial openness,to study the connotation of financial openness and the inner logical relationship between financial openness and income disparity.Second,to comb through the literature and theories,analyze the impact of financial openness on income gap and its mechanism of action,and put forward the research hypothesis.Third,a cross-country panel data of 144 countries in the world from 1971 to 2020 is used as the sample to conduct an empirical study using a two-way fixed effects model,GMMestimation,and instrumental variables method.The empirical results confirm the proposed hypothesis that financial openness widens the income gap,and the results remain robust after using instrumental variables to mitigate the endogeneity problem.Fourth,since the current income distribution in China emphasizes the promotion of fair opportunities and the acceleration of the formation of an "olive-shaped" distribution structure with a large middle and small ends,this paper also examines the changes in the income shares of different groups of people by income in order to investigate The paper also examines the changes of income distribution structure brought by financial liberalization.The results show that financial liberalization will be more favorable to the top 10%of income earners,especially the top 5%of income earners.Fifth,the empirical study supports the transmission mechanism proposed in this paper:that is,it affects income distribution through labor-capital income distribution,industrial structure changes,and returns to education.The results of the empirical study show that financial liberalization will reduce the labor income share,significantly increase the per capita income of the tertiary industry,and raise the wage income of the group with higher education level,thus widening the income gap.Finally,this paper puts forward targeted suggestions for promoting the overall improvement of labor force education level,rationalizing industrial structure,and strengthening income redistribution in light of the empirical results and the real situation,while referring to international experiences. |
