Finance is good for the poor but it depends where you live

Abstract

I examine whether or not the incomes of the poor systematically grow with average incomes, and whether financial development enhances the incomes of the poorest quintile. Following the methodology of Dollar and Kraay (2002), I find, once extending Dollar and Kraay's data, their findings are robust to the Lucas critique and economic growth is important for poverty reduction universally. However, in comparison to other authors' work I show financial development aids the incomes of the poor in certain regions, whilst it may be detrimental in others. This proposes evidence against a "one size fits all" model adding a further contribution to the literature on financial development and poverty.

Publication DOI: https://doi.org/10.1016/j.jbankfin.2012.04.022
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School
Additional Information: © 2012 Elsevier B.V. Open access under CC BY license.
Uncontrolled Keywords: Economic growth,Financial development,Poverty,Finance,Economics and Econometrics
Publication ISSN: 1872-6372
Full Text Link:
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
https://www.sci ... 1203?via%3Dihub (Publisher URL)
PURE Output Type: Article
Published Date: 2013-05-01
Authors: Rewilak, Johan (ORCID Profile 0000-0001-5337-8873)

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