Associate Professor Xianming Sun, Executive Deputy Director of the Base, has published a collaborative paper titled "Innovation, financial permeation, and income inequality: From a dynamic perspective in China"  in Journal of Management Science and Engineering.

The Journal of Management Science and Engineering is an A-level important journal of management science recognized by the Department of Management Sciences of the National Natural Science Foundation of China, with an impact factor of 6.6 in JCR and all four disciplines it belongs to are located in the Q1 area.

Abstract:Innovation is a driving force of wealth distribution. To explore its time-varying effect on income inequality, we propose a nonparametric model using the local linear dummy variable estimation (LLDVE) method. Based on a province-level panel data from China spanning from 2006 to 2020, we find that innovation initially reduces income disparity until 2009, then exacerbates it from 2013 to 2016, and alleviates inequality again over 2018–2020. We further verify that financial permeation serves as a catalyst in the inequitable income distribution driven by innovation. However, this moderating effect reverses in the relationship between green innovation and income inequality. This suggests that we should enhance the financial service towards all aspects of innovation beyond its support of green innovation.

Keywords: Income inequality; Innovation; Financial permeation; Time-varying relationship; Local linear dummy variable estimation (LLDVE)

Link：https://www.sciencedirect.com/science/article/pii/S2096232024000118

Author profile

Xianming Sun is an associate professor in the Department of Financial Engineering at Zhongnan University of Economics and Law and the Executive Deputy Director of the Innovation and Talent Base for Digital Technology and Finance. His research focuses on financial engineering, financial technology, and related fields. His research outcomes have been published in journals such as Journal of Economic Dynamics and Control, Journal of Futures Markets, Energy Economics, and Journal of Computational and Applied Mathematics. He has been awarded the title of "Wenlan Young Scholar" by Zhongnan University of Economics and Law. He has presided over two projects funded by the National Natural Science Foundation of China and research projects funded by the Fundamental Research Funds for the Central Universities. His related research was awarded the Outstanding Paper Prize at the 16th China Financial Engineering Annual Conference (2017).