Bangladesh Institute of Capital Markets (BICM) held its "BICM Research Seminar-08" at its multipurpose hall at 11 am on Tuesday.
BICM Assistant Professor Shafayeduzzaman Khan presented the keynote address of the seminar title "Financial Openness and Income Inequality in Emerging Economies: A Panel Data Approach", said a BICM press release.
Dr Habibur Rahman, Executive Director, Bangladesh Bank; Dr SM Zulfiqar Ali, Senior Research Fellow, Bangladesh Institute of Development Studies (BIDS); Wajid Hasan Shah, Director (Studies), BICM acted as the moderator of the seminar.
The event was attended by BICM faculty teachers, officials and other invited guests.
According to the BICM study, financial interconnections regulate overall economic growth to varying degrees through the reduction of data inequality, the efficient disbursement of credit, and the reduction of appropriate capital risk.
Through the influencers and processes of the mentioned interconnections, it enables financially limited local businesses to raise capital, expand, and increase production boundaries at a low cost.
According to the study findings, financial openness carries far-reaching consequences for the labour market, considering the structure of skilled and unskilled labour in terms of the relative complementarity of capital and skilled labour.
The analysis of this particular outcome in the research presented at the seminar showed that the level of financial inequality increases with capital-account liberalization.
As a result, the income of skilled labour increases disproportionately to their unskilled counterparts due to the increase in the level of financial inequality.
During the discussion, Dr Habibur Rahman agreed with the findings of the study and said that it is difficult to determine the index of financial openness. Not all indicators of economic integration are measurable. Income inequality exists not only in Bangladesh but also in many other countries.
On the other hand, Dr SM Zulfiqar Ali said that the greater the regional disparity in Bangladesh, the greater the difference in income between different groups. The wise negotiators highlighted the humanitarian aspects of income inequality and directed some more necessary research for Bangladesh.