Financial Development and Poverty Reduction: A Study of Middle-Income Countries

This paper examines the impact of financial development on poverty in middle-income countries. To that end, we made recourse to several estimation techniques over a study period stretching from 1980 to 2014. The results indicate that development of the banking system does not necessarily improve the...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors Nasreddine Kaidi, Mensi, Sami
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2018
Subjects
Economic models
Poverty
Securities markets
Stock exchanges
Stock market indexes
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Summary:This paper examines the impact of financial development on poverty in middle-income countries. To that end, we made recourse to several estimation techniques over a study period stretching from 1980 to 2014. The results indicate that development of the banking system does not necessarily improve the poor’s conditions. However, development of the stock market does. Through a sensitivity analysis, we concluded that our banking index is sensitive to the use of the poverty index, while our stock market index is sensitive to the choice of the middle-income vs. high income studied countries.