Financial Development Inequality And Poverty

Author : Mr.Sami Ben Naceur,RuiXin Zhang
Publisher : International Monetary Fund
Page : 28 pages
File Size : 45,6 Mb
Release : 2016-02-19
Category : Business & Economics
ISBN : 9781498359658

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Financial Development, Inequality and Poverty by Mr.Sami Ben Naceur,RuiXin Zhang Pdf

This paper provides evidence on the link between financial development and income distribution. Several dimensions of financial development are considered: financial access, efficiency, stability, and liberalization. Each aspect is represented by two indicators: one related to financial institutions, and the other to financial markets. Using a sample of 143 countries from 1961 to 2011, the paper finds that four of the five dimensions of financial development can significantly reduce income inequality and poverty, except financial liberalization, which tends to exacerbate them. Also, banking sector development tends to provide a more significant impact on changing income distribution than stock market development. Together, these findings are consistent with the view that macroeconomic stability and reforms that strengthen creditor rights, contract enforcement, and financial institution regulation are needed to ensure that financial development and liberalization fully support the reduction of poverty and income equality.

Author : Thorsten Beck,Asl? Demirgüç-Kunt,Ross Levine
Publisher : World Bank Publications
Page : 36 pages
File Size : 42,7 Mb
Release : 2004
Category : Finance
ISBN : 8210379456XXX

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Finance, Inequality, and Poverty by Thorsten Beck,Asl? Demirgüç-Kunt,Ross Levine Pdf

"While substantial research finds that financial development boosts overall economic growth, we study whether financial development disproportionately raises the incomes of the poor and alleviates poverty. Using a broad cross-country sample, we distinguish among competing theoretical predictions about the impact of financial development on changes in income distribution and poverty alleviation. We find that financial development reduces income inequality by disproportionately boosting the incomes of the poor. Countries with better-developed financial intermediaries experience faster declines in measures of both poverty and income inequality. These results are robust to controlling for other country characteristics and potential reverse causality"--National Bureau of Economic Research web site.

Author : Mr. Ross Levine
Publisher : International Monetary Fund
Page : 80 pages
File Size : 44,6 Mb
Release : 2021-06-11
Category : Business & Economics
ISBN : 9781513583365

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Finance, Growth, and Inequality by Mr. Ross Levine Pdf

Finance and growth emerged as a distinct field of economics during the last three decades as economists integrated the fields of finance and economic growth and then explored the ramifications of the functioning of financial systems on economic growth, income distribution, and poverty. In this paper, I review theoretical and empirical research on the connections between the operation of the financial system and economic growth and inequality. While subject to ample qualifications, the preponderance of evidence suggests that (1) financial development—both the development of banks and stock markets—spurs economic growth and (2) better functioning financial systems foster growth primarily by improving resource allocation and technological change, not by increasing saving rates. Some research also suggests that financial development expands economic opportunities and tightens income distribution, primarily by boosting the incomes of the poor. This work implies that financial development fosters growth by expanding opportunities. Finally, and more tentatively, financial innovation—improvements in the ability of financial systems to ameliorate information and transaction costs—may be necessary for sustaining growth.

Author : Thorsten Beck,Asli Demirguc-Kunt,Ross Levine
Publisher : Unknown
Page : 128 pages
File Size : 55,9 Mb
Release : 2013
Category : Electronic
ISBN : OCLC:931678579

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Finance, Inequality, and Poverty by Thorsten Beck,Asli Demirguc-Kunt,Ross Levine Pdf

While substantial research finds that financial development boosts overall economic growth, the authors study whether financial development is pro-poor: Does financial development disproportionately raise the income of the poor? Using a broad cross-country sample, the authors find that the answer is yes: Financial intermediary development reduces income inequality by disproportionately boosting the income of the poor and therefore reduces poverty. This result is robust to controlling for simultaneity bias and reverse causation.

Author : Anonim
Publisher : Unknown
Page : 128 pages
File Size : 49,6 Mb
Release : 2024-06-14
Category : Electronic
ISBN : 1498360157

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Financial Development, Inequality and Poverty by Anonim Pdf

Author : Thorsten Beck
Publisher : Unknown
Page : 47 pages
File Size : 41,8 Mb
Release : 2010
Category : Electronic
ISBN : OCLC:1290831817

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Finance, Inequality, and Poverty by Thorsten Beck Pdf

While substantial research finds that financial development boosts overall economic growth, we study whether financial development disproportionately raises the incomes of the poor and alleviates poverty. Using a broad cross-country sample, we distinguish among competing theoretical predictions about the impact of financial development on changes in income distribution and poverty alleviation. We find that financial development reduces income inequality by disproportionately boosting the incomes of the poor. Countries with better-developed financial intermediaries experience faster declines in measures of both poverty and income inequality. These results are robust to controlling for other country characteristics and potential reverse causality.

Author : Mr.Martin Cihak,Ms.Ratna Sahay
Publisher : International Monetary Fund
Page : 50 pages
File Size : 53,5 Mb
Release : 2020-01-17
Category : Business & Economics
ISBN : 9781513526546

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Finance and Inequality by Mr.Martin Cihak,Ms.Ratna Sahay Pdf

The study examines empirical relationships between income inequality and three features of finance: depth (financial sector size relative to the economy), inclusion (access to and use of financial services by individuals and firms), and stability (absence of financial distress). Using new data covering a wide range of countries, the analysis finds that the financial sector can play a role in reducing inequality, complementing redistributive fiscal policy. By expanding the provision of financial services to low-income households and small businesses, it can serve as a powerful lever in helping create a more inclusive society but—if not well managed—it can amplify inequalities.

Author : Martin Ravallion
Publisher : World Bank Publications
Page : 32 pages
File Size : 43,9 Mb
Release : 2001
Category : Bienestar economico y social
ISBN : 8210379456XXX

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Growth, Inequality and Poverty by Martin Ravallion Pdf

One side in the current debate about who benefits from growth has focused solely on average impacts on poverty and inequality, while the other side has focused on the diverse welfare impacts found beneath the averages. Both sides have a point.

Author : Stijn Claessens,Erik Feijen
Publisher : World Bank Publications
Page : 128 pages
File Size : 40,6 Mb
Release : 2007
Category : Social Science
ISBN : 9780821368657

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Financial Sector Development and the Millennium Development Goals by Stijn Claessens,Erik Feijen Pdf

This study investigates the relationship between financial sector development and progress in reaching the Millennium Development Goals (MDGs). It assesses the contribution of countries' financial sector development to achieving the MDGs. The focus is on the relationships between financial development and economic welfare and growth, and the following four MDG-themes: Poverty, Education, Health, and Gender Equality. In doing so, the book reviews the theoretical channels, surveys existing empirical evidence - both cross-country and case study evidence, and provides new evidence. Financial Sector Development and the Millennium Development Goals finds that financial development is an important driver for economic welfare in that it reduces the prevalence of income poverty and undernourishment. In addition, new evidence is provided of a positive association between financial development and health, education, and gender equality.

Author : Ms. Valerie Cerra,Mr. Ruy Lama,Norman Loayza
Publisher : International Monetary Fund
Page : 54 pages
File Size : 47,8 Mb
Release : 2021-03-12
Category : Business & Economics
ISBN : 9781513572666

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Links Between Growth, Inequality, and Poverty: A Survey by Ms. Valerie Cerra,Mr. Ruy Lama,Norman Loayza Pdf

Is there a tradeoff between raising growth and reducing inequality and poverty? This paper reviews the theoretical and empirical literature on the complex links between growth, inequality, and poverty, with causation going in both directions. The evidence suggests that growth can be effective in reducing poverty, but its impact on inequality is ambiguous and depends on the underlying sources of growth. The impact of poverty and inequality on growth is likewise ambiguous, as several channels mediate the relationship. But most plausible mechanisms suggest that poverty and inequality reduce growth, at least in the long run. Policies play a role in shaping these relationships and those designed to improve equality of opportunity can simultaneously improve inclusiveness and growth.

Author : Asli Demirgüç-Kunt,Ross Levine
Publisher : Unknown
Page : 1616 pages
File Size : 51,8 Mb
Release : 2018-07-27
Category : Economic development
ISBN : 1785367420

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Finance and Growth by Asli Demirgüç-Kunt,Ross Levine Pdf

This two-volume collection brings together major contributions to the study of finance and growth. It includes conceptual and empirical papers that use a range of methodologies to discover the connections between financial systems - including financial contracts, markets, and intermediaries - and the functioning of the economy - including economic growth, entrepreneurship, technological innovation, poverty alleviation, the distribution of income, and the structure and volatility of economies. It also discusses contributions to the study of the legal, political, institutional, social capital and policy determinants of financial development. With an original introduction by the editors, this collection is an important resource for students, academics and practitioners.

Author : Sylviane Guillaumont Jeanneney,Kangni Kpodar
Publisher : International Monetary Fund
Page : 42 pages
File Size : 50,5 Mb
Release : 2008-03
Category : Business & Economics
ISBN : UCSD:31822034558577

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Financial Development and Poverty Reduction by Sylviane Guillaumont Jeanneney,Kangni Kpodar Pdf

This article investigates how financial development helps to reduce poverty directly through the McKinnon conduit effect and indirectly through economic growth. The results obtained with data for a sample of developing countries from 1966 through 2000 suggest that the poor benefit from the ability of the banking system to facilitate transactions and provide savings opportunities but to some extent fail to reap the benefit from greater availability of credit. Moreover, financial development is accompanied by financial instability, which is detrimental to the poor. Nevertheless, the benefits of financial development for the poor outweigh the cost.

Author : George R. G. Clarke,Heng-fu Zou,Lixin Colin Xu
Publisher : World Bank Publications
Page : 32 pages
File Size : 41,8 Mb
Release : 2003
Category : Equality
ISBN : 8210379456XXX

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Finance and Income Inequality by George R. G. Clarke,Heng-fu Zou,Lixin Colin Xu Pdf

Although theoretical models make distinct predictions about the relationship between financial sector development and income inequality, little empirical research has been conducted to compare their relative explanatory power. Clarke, Xu, and Zou examine the relation between financial intermediary development and income inequality in a panel data set of 91 countries for the period 1960-95. Their results provide evidence that inequality decreases as economies develop their financial intermediaries, consistent with the theoretical models in Galor and Zeira (1993) and Banerjee and Newman (1993). Moreover, consistent with the insight of Kuznets, the relation between the Gini coefficient and financial intermediary development appears to depend on the sectoral structure of the economy: a larger modern sector is associated with a smaller drop in the Gini coefficient for the same level of financial intermediary development. But there is no evidence of an inverted-U-shaped relation between financial sector development and income inequality, as suggested by Greenwood and Jovanovic (1990). The results are robust to controlling for biases introduced by simultaneity. This paper--a product of Investment Climate, Development Research Group--is part of a larger effort in the group to understand the link between economic development and financial sector performance.

Author : Richard H. Adams
Publisher : World Bank Publications
Page : 48 pages
File Size : 43,9 Mb
Release : 2003
Category : Economic development
ISBN : 8210379456XXX

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Economic Growth, Inequality and Poverty by Richard H. Adams Pdf

Author : Mr.Paul Holden,Mr.Vassili Prokopenko
Publisher : INTERNATIONAL MONETARY FUND
Page : 0 pages
File Size : 55,5 Mb
Release : 2001-10-01
Category : Business & Economics
ISBN : 1451857748

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Financial Development and Poverty Alleviation by Mr.Paul Holden,Mr.Vassili Prokopenko Pdf

This paper reviews current thinking on the relationship between financial development and poverty alleviation-a subject that has grown increasingly important in the policy prescriptions of the IMF and other international financial institutions in recent years. Although work on this issue is far from over, some important lessons can be learned from the existing evidence. The paper reflects on these lessons and looks at some of the policy implications of the analysis.