Biyase, MduduziChisadza, Carolyn2023-07-032023Mduduzi Biyase & Carolyn Chisadza (2023): Symmetric and asymmetric effects of financial deepening on income inequality in South Africa, Development Southern Africa, vol. 40, no. 5, pp. 961-978, DOI: 10.1080/0376835X.2022.2163226.0376-835X (print)1470-3637 (online)10.1080/0376835X.2022.2163226http://hdl.handle.net/2263/91248The aim of this study is to examine the financial development-inequality nexus in South Africa from 1980 to 2017, specifically if financial deepening reduces income inequality. The initial results indicate a positive association between financial deepening and income inequality. On further exploration, we find evidence that the Greenwood and Jovanovich hypothesis holds for South Africa. We observe an inverted non-linear relationship between financial deepening and income inequality in the long-run. The results suggest that at early stages of financial development, income inequality increases, but gradually starts to decrease as the financial sector becomes more established in the long-run. The findings highlight the need for policymakers to focus on inclusive financial sector reforms in the early stages of financial development.en© 2023 Government Technical Advisory Centre (GTAC). This is an electronic version of an article published in Development Southern Africa, vol. 40, no. 5, pp. 961-978, 2023. doi : 10.1080/0376835X.2022.2163226. Development Southern Africa is available online at : http://www.tandfonline.comloi/cdsa20.Financial deepeningIncome inequalityAutoregressive distributed lag (ARDL)South Africa (SA)SDG-08: Decent work and economic growthSDG-10: Reduced inequalitiesPostprint Article