Abstract:
In this study comprehensive analysis has been conducted to check the impact of
financialization in context of stock market on income inequality in Asian countries as a whole and by Income levels as well. In this study Fixed Effect Model is used for analysis to
examine how stock market liquidity, size and activity influence income inequality in Asian
countries. In Asian countries, stock market size, activity and liquidity have strong impact on reducing income inequality. Financialization should be enhanced in context of stock market to reduce Income Inequality in Asian countries. Inflation should be decreased to reduce income inequality in overall Asian countries. On the other side, Female Labor force
participation should be increased in High Income Countries to reduce income inequality and unemployment and inflation should be controlled in low Middle income countries to reduce income inequality.
