Description: Finance, Inequality, and Poverty: Cross-Country Evidence

Finance, Inequality, and Poverty: Cross-Country Evidence

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...

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Bibliographic Details
Main Authors:	Beck, Thorsten, Demirguc-Kunt, Asli, Levine, Ross
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ABSOLUTE POVERTY CAPITAL MARKETS CORPORATE FINANCE DEVELOPMENT BANKS ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE FINANCIAL DEVELOPMENT FINANCIAL ECONOMICS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICES GROSS DOMESTIC PRODUCT GROWTH POLICIES GROWTH RATE INCOME DISTRIBUTION INCOME INEQUALITY INCOME LEVELS INFANT MORTALITY INFLATION RATE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET COMPETITION POLITICAL ECONOMY POVERTY ALLEVIATION PRIVATE SECTOR PRODUCTIVITY ABSOLUTE VALUE ADVERSE SELECTION AGGREGATE GROWTH AGGREGATE MEASURE ANNUAL GROWTH ANNUAL GROWTH RATE ASYMMETRIC INFORMATION AVERAGE ANNUAL AVERAGE GROWTH AVERAGE INCOME AVERAGE INCOME GROWTH CAPITAL ACCUMULATION CENTRAL BANK COMPETITIVENESS CORRUPTION COUNTRY REGRESSIONS COUNTRY-SPECIFIC EFFECTS CREDIT CONSTRAINTS CREDIT MARKET CROSS-COUNTRY STUDIES DEBT DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DISTRIBUTION EFFECT DISTRIBUTION FUNCTION DISTRIBUTIONAL CHANGE DISTRIBUTIONAL COMPONENT DISTRIBUTIONAL EFFECT DISTRIBUTIONAL EFFECTS ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERSPECTIVES ECONOMIC STUDIES EDUCATIONAL ATTAINMENT EMPIRICAL GROWTH LITERATURE EMPIRICAL LITERATURE EMPIRICAL RESULTS EQUAL ACCESS ERROR TERM EXPLANATORY VARIABLES EXPORTS FINANCIAL DEPTH GDP GDP PER CAPITA GINI COEFFICIENT GROWTH GROWTH COMPONENT GROWTH DETERMINANTS GROWTH EFFECT GROWTH PRO-POOR GROWTH RATES HUMAN CAPITAL INCOME INCOME GROUPS INCOME GROWTH INCOME GROWTH RATE INCOME QUINTILES INCOME SHARE INCOME SHOCKS INCOMES INEQUALITY INEQUALITY CHANGES INEQUALITY FALLS INEQUALITY MEASURES INTERNATIONAL DEVELOPMENT INVESTMENT OPPORTUNITIES LEGAL ORIGIN LINEAR RELATIONSHIP LORENZ CURVE LOW INCOMES MACROECONOMICS MEAN INCOME MIDDLE INCOME COUNTRIES MONETARY ECONOMICS NORMAL DISTRIBUTION 0 HYPOTHESIS PER CAPITA GROWTH PER CAPITA GROWTH RATE POINT ESTIMATE POLICY RESEARCH POPULATION GROWTH POPULATION GROWTH RATES POSITIVE EFFECT POSITIVE IMPACT POSITIVE RELATIONSHIP POVERTY POVERTY GAP POVERTY INCIDENCE POVERTY REDUCTION POVERTY-GROWTH-INEQUALITY TRIANGLE PRIMARY ENROLLMENT PRIMARY SCHOOL PRO-GROWTH POLICIES PUBLIC POLICIES PUBLIC SECTOR REAL GDP REDUCING POVERTY RELATIVE INCOME REVERSE CAUSATION SIGNIFICANCE LEVEL SIGNIFICANT CORRELATION SIGNIFICANT EVIDENCE SIGNIFICANT IMPACT SOCIAL SERVICES STANDARD DEVIATION TRADE OPENNESS VALUATION WEALTH Microdata Set
Online Access:	http://documents.worldbank.org/curated/en/2004/06/4966140/finance-inequality-poverty-cross-country-evidence http://hdl.handle.net/10986/14038

Description
Summary:	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.

Finance, Inequality, and Poverty: Cross-Country Evidence

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