Effect of Deepening Finacial Sector on Income Gap in Six Asia Countries 2012-2016
The financial sector has an important role in increasing a country’s economic growth, but the income gap is one of the main problems in economic growth in various countries. The financial sector has a strong influence on economic development, poverty alleviation and economic stability. This study aims to determine the effect of financial sector deepening on income inequality by using panel data from six countries, namely Malaysia, Indonesia, Philippines, Singapore, China and Korea which are divided into two groups, namely lower middle income countries, namely Indonesia and the Philippines and upper middle / high income, namely Malaysia, Singapore, China and Korea in 2012-2016. By using the Panel Least Squares analysis technique, this study found results that were upper middle / high income; bank assets, money supply, stock traded have a positive effect; lending to the private sector; domestic money bank assets, private sector debt securities and stock market capitalization have a negative effect. Whereas in lower middle income countries; bank assets, money suply, stock market capitalization have a negative effect; stock traded has a positive effect; however, lending to the private sector, domestic money bank assets, government debt and private sector debt does not affect the income gap.
Keywords: Financial Deepening, Income Gap, Asia
 Brandl, Michael W.,2002. The role of financial institution in long run economic growth”,www.buc.utexas. edu/faculty/Michael.brandl,:12-02-02
 Bursa Efek Indonesia. (2018). Pengantar Pasar Modal. Diambil kembali dari Bursa efek indonesia: https://www.idx.co.id/investor/pengantar-pasar-modal/
 Cihak, M., Asli, K. D., Levine, R., & Erik, F. (2012). Benchmarking financial systems around the world. The World Bank.
 Cingano, F. (2014). Trends in Income Inequality and Its Impact on Economic Growth.
 Golina, N. J. (2018). An examination of the stock market’s effect on economic inequality. Undergraduate economic review, 15(1), 1-33.
 Greselin, F., & Ricardas, Z. (2018). From the classical gini index of income inequality to a new zenga-type relative measure of risk: a modeller’s perpective. Econometrics, 6(4), 1-20.
 Jianu, I. (2017). The impact of private sector credit on icome inequalities in european union. Theoritical and applied economics, XXIV(2(611)), 61-74.
 Odhiambo, N. M. (2009). Financial depending and poverty reduction in zambia: an empirical investigation. International journal of social economics, 41-53.
 Otoritas Jasa Keuangan. (2017). Bank umum. Diambil kembali dari Otiritas jasa keuangan: https://www.ojk.go.id/id/kanal/perbankan/Pages/Bank-Umum.aspx
 Ruslan, D. (2011). Analisis financial deepening di indonesia. Journal of Indonesia Applied Economist, 5 (2), 183-214. Sahay, R. (2015). Rethinking financial deepening: stability and growth in emerging markets. IMF.
 Sanyal, P., & Ehlen, M. (2017). The interaction of publc debt, income inequalitiy and economic growth for u.s. states: a bayesian non- parameteric analysis. empirical economics review, 7(1), 57-101.
 Sheera, V. P., & Bishnoi, A. (2013). Financial deepening of selected ASEAN nations. Malaysian Journal of Economic Studies, 50(1), 79-100.
 Stiglitze, J. E. (1998). More Instrumenrs and Broader Goals: Moving the Post Washington Consesus (p. 2). Helinski: UNU/WIDER.
 The World Bank. (2018). Global Financial Development Report 2017/2018: Bankers without Borders. Diambil kembali dari The World Bank: https://www.worldbank.org/en/publication/gfdr/data/global- financial-development-database
 Yolanda, Z. (2018). Analisis Pengaruh Financial Deeping terhadap Pertumbuhan Ekonomi, Kerimpangan Pendapatan, dan Tingkat Kemiskinan: Studi Kasus 73 Negara dan 33 Provinsi di Indonesia (Doctoral dissertation, Universitas Gadjah Mada).