THE EFFECT OF FINANCIAL DEVELOPMENT ON INCOME INEQUALITY

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Vesë Qehaja-Keka
Atdhetar Gara
https://orcid.org/0000-0003-4341-7802
Erblina Hajdari
https://orcid.org/0009-0003-6593-9596
Arber Hoti

Abstract

The imperative goal of attaining sustainable development necessitates mitigating income inequality and bolstering access to financial institutions. This research explores the influence of an array of independent variables, namely credit demand, GDP per capita, inflation, government consumption expenditure, and education, on the Gini coefficient across the EU’s 27 Member States from 2008 to 2019. The investigation procured secondary data from the esteemed international entity, the World Bank, with 324 observations belonging to the panel type. Because of the utilization of panel data, this study implemented various econometric models, commencing with the OLS model, followed by the fixed effects model (FE) and random effects model (RE). According to the outcomes of the econometric models, credit demand and education positively impact income inequality. At the same time, GDP per capita, inflation, and government consumption expenditures have a negative effect on income inequality. Additionally, the findings demonstrate the significant impact of credit demand, GDP per capita, inflation, and government consumption expenditures on income inequality. 

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How to Cite
Qehaja-Keka, Vesë, Atdhetar Gara, Erblina Hajdari, and Arber Hoti. 2023. “THE EFFECT OF FINANCIAL DEVELOPMENT ON INCOME INEQUALITY”. Journal of Liberty and International Affairs 9 (3):299-312. https://doi.org/10.47305/JLIA2393298qk.
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Author Biographies

Vesë Qehaja-Keka, University of Prishtina, Faculty of Economics, Kosovo

Vese Qehaja - Keka, a dedicated Ph.D. candidate in the Faculty of Economy at the University of Pristina, embodies a stellar academic journey. She initially earned a Bachelor's degree in Banking, Finance, and Accounting, achieving a top GPA that underscored her academic prowess. Continuing her pursuit of knowledge, she went on to attain a Master's degree in the same field, further solidifying her expertise. Her academic journey is complemented by active contributions to the realm of academic research, marked by notable publications indexed in Scopus. Vese's commitment to pushing the boundaries of knowledge in finance and accounting is evident through her research endeavors. Beyond academia, Vese Qehaja - Keka's professional trajectory reflects a steadfast dedication to excellence in the fields of finance and accounting. Her career showcases a harmonious blend of academic rigor and practical proficiency, underscoring her commitment to both scholarly pursuits and real-world applications. In summary, Vese Qehaja - Keka stands as a Ph.D. candidate whose academic achievements, research contributions, and professional endeavors collectively highlight a commitment to excellence in the realms of finance and accounting.

Atdhetar Gara, South East European University, Faculty of Economics, North Macedonia

Atdhetar Gara, a dedicated Ph.D. Candidate at South East European University in North Macedonia, has showcased a commitment to academic and research excellence throughout his educational journey. Having completed his earlier education at the bachelor and master levels in the Department of Economics at the University of Prishtina, he established a strong foundation in his field. Atdhetar's educational pursuits have been complemented by active involvement in academic research, with notable contributions reflected in publications indexed in Scopus. Currently serving as a professor at Pjeter Budi College, and brings his expertise to the academic realm, contributing to the growth and development of aspiring students. Additionally, he actively participates in various projects, showcasing his versatility as a statistical data processor. multifaceted engagement in academia and research exemplifies his dedication to advancing knowledge and making meaningful contributions to his field.

Erblina Hajdari, University of Prishtina, Faculty of Economics, Kosovo

Erblina Hajdari, a passionate economist, has completed her Bachelor and Master studies at the University of Prishtina, focusing on the economics department. After completing her higher education, she continues her journey in the world of science and research. With a pronounced passion for the field, she is currently involved in several projects and scientific works, contributing to the advancement of knowledge in the field of economics. Her contribution to scientific research is evident, driven by a passion for economic development and project analysis. With unwavering commitment, Erblina aims to positively impact her field and provide a continuous contribution to the field of economic sciences.

Arber Hoti, University of Prishtina, Faculty of Economics, Kosovo

Dr. Arber Hoti, Assistant Professor at the University of Prishtina's Faculty of Economics, specializes in Accounting, Corporate Finance, Personal Finance, and Corporate Governance. He earned a Bachelor’s in Banking, Finance, and Accounting with a top GPA from the same university, followed by a Master's in Accounting from Arizona State University, USA. Dr. Hoti received his Doctorate in Economics from the University of Prishtina in 2019. He furthered his studies through the Fulbright program at the University of Northern Arizona, USA, in 2019-2020. Dr. Hoti holds professional certifications like Certified Internal Auditor and Certified Accountant/Auditor from the Society of Certified Accountants and Auditors of Kosovo (SCAAK). He has served on the Kosovo Council for Financial Reporting (KCFR) and actively contributes to academic research, with publications in Scopus and Web of Science indexed journals. His career demonstrates a commitment to academic and professional excellence in finance and accounting.