Financial Deepening, Property Rights, and Poverty: Evidence from Sub-Saharan Africa

• Authors: Singh Raju Jan , Huang Yifei
• Languages of publication: EN

Abstracts

EN

Recent studies on the relationship between financial development and poverty have been inconclusive. Some claim that, by allowing more entrepreneurs to obtain financing, financial development improves the allocation of capital, which has a particularly large impact on the poor. Others argue that it is primarily the rich and politically connected who benefit from improvements in the financial system. This paper looks at a sample of 37 countries in sub-Saharan Africa from 1992 through 2006. Its results suggest that financial deepening could widen income inequality and increase poverty, if not accompanied by stronger property rights. Similarly, interest rate and lending liberalization alone could be detrimental to the poor without institutional reforms, in particular stronger property rights and wider access to credit information.

Keywords

EN

financial development; poverty alleviation; income distribution; Africa

• Publisher: Uniwersytet Warszawski. Wydawnictwo Naukowe Wydziału Zarządzania
• Journal: Journal of Banking and Financial Economics
• Year: 2015
• Issue: 1(3)
• Pages: 130-151

Dates

online

2015-03-26

Contributors

author

Singh Raju Jan

• The World Bank, United States

author

Huang Yifei

• GMO, United States

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Identifiers

ISSN

2353-6845

DOI

10.7172/2353-6845.jbfe.2015.1.6