Over the past decades, financial markets have been integrated across countries while income inequality has increased in most countries. This paper studies the effect of financial market integration on income inequality and investigates whether this effect varies with the degree of financial market development. We find empirical evidence that financial market integration and financial market development interact to change income inequality. Specifically, the effect of financial market integration on income inequality is nonlinear, and the degree of financial market development plays an important role. Opening financial markets worsens income inequality in the countries holding the underdeveloped state of financial markets, however, the effect of capital account openness on income inequality is statistically insignificant in the countries with developed financial markets.

中文翻译：

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金融市场一体化与收入不平等

在过去的几十年里，金融市场已经在各国一体化，而大多数国家的收入不平等却在加剧。本文研究了金融市场一体化对收入不平等的影响，并考察了这种影响是否会随着金融市场的发展程度而变化。我们发现经验证据表明金融市场一体化和金融市场发展相互作用以改变收入不平等。具体而言，金融市场一体化对收入不平等的影响是非线性的，金融市场发展程度起着重要作用。开放金融市场加剧了金融市场不发达的国家的收入不平等，然而，