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Financial Development and Poverty Reduction :, Can There Be a Benefit Without a Cost?, Sylviane Guillaumont Jeanneney, Kangni Kpodar

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
Table Of Contents
Contents; I. Introduction; II. Financial Development and the Poor: The Predominant McKinnon Conduit Effect; III. The Model; IV. Estimating the Impact of Financial Development on Poverty; A. The Data; B. Econometric Methodology; C. The Results; Figure; 1. Interaction Among Financial Development, Financial Instability, Economic Growth and Poverty Reduction; V. Conclusion; 11. Summary of the Estimated Coefficients for the Channels Between Financial Development and Poverty; References; Tables; 1. Financial Development (M3/GDP), Financial Instabil
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (38 p.)
Specific Material Designation
Form Of Item

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