Stock returns and income inequality in emerging markets
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Jiaxin Zheng
CoPIs:
Pingyu Zhou
College:
College of Business and Public Management
Major:
Finance
Faculty Research Advisor(s):
Nazif Durmaz
Abstract:
Income inequality has always been a global problem, especially in emerging economies, where differences in wealth distribution often pose significant socioeconomic challenges. This article focuses on emerging economies, specifically the BRICS (Brazil, Russia, India, China, and South Africa) and MIKTA countries (Mexico, Indonesia, South Korea, Turkey, and Australia). It explores the interaction between stock returns and income inequality. Relation. Known for their large populations, expanding economies, and growing prominence in global affairs, the BRICS countries are key players in the emerging market landscape. Likewise, MIKTA countries have made significant contributions to global economic growth and development due to their diverse economic structures and strategic geographical locations. By working together, both BRICS and MIKTA, two emerging global organizations, are exerting power beyond their individual influence. This paper utilizes data from 1965 to 2020 to examine stock returns and income inequality in BRICS and MIKTA. Our results reveal that changes in income levels combined with stock market fluctuations have effects on income inequality in emerging markets.