Maria Socorro Gochoco-Bautista, University of the Philippines: The study examines the long-term effect of financialization and financial development on inequality, investment, and growth using OECD data and panel cointegration and other econometric procedures.

It defines financialization in terms of the following factors: (i) expansion of the financial sector in the economy, measured by the share of value-added in the finance and insurance sectors among all sectors (%); (ii) increased share of financial sector or shareholders in the profit or resources of non-financial sectors or the distributed income of corporations, measured by the share of net payments of distributed income of corporations among net value-added for non-financial corporations (%); and (iii) increased overseas financial activities or financial globalization as measured by the ratio of external financial assets plus liabilities to GDP (%).

Financial development is proxied by one of the following: (i) domestic credit provided by the financial sector to the...

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