Financial Development and Poverty : Evidence from the CFA Franc Zone

The financial liberalization in the 1980s and early 1990s led the CFA Franc Zone countries to deepen reforms in their financial systems. These reforms fostered financial development, which in turn may have reduced income poverty, as emphasized by several theoretical arguments in the literature. This...

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Main Authors: Kiendrebeogo, Youssouf, Minea, Alexandru
Format: Journal Article
Language:en_US
Published: Taylor and Francis 2016
Subjects:
Online Access:http://hdl.handle.net/10986/25322
id okr-10986-25322
recordtype oai_dc
spelling okr-10986-253222021-05-25T10:54:44Z Financial Development and Poverty : Evidence from the CFA Franc Zone Kiendrebeogo, Youssouf Minea, Alexandru financial development poverty CFA Franc Zone The financial liberalization in the 1980s and early 1990s led the CFA Franc Zone countries to deepen reforms in their financial systems. These reforms fostered financial development, which in turn may have reduced income poverty, as emphasized by several theoretical arguments in the literature. This study aims at estimating the contribution of financial development to poverty alleviation in the CFA Franc Zone. Results based on a panel of CFA Franc Zone countries show that financial development is associated with a drop in the proportion of poor population. Next, financial development reduces the extent to which the income of individuals falls below the poverty line. Moreover, in some cases, the effect of financial development on poverty may be subject to nonlinearities. Finally, financial instability or unstable financial development leading to crises may mitigate the favourable effect of financial development on poverty reduction. These findings are robust to the use of alternative measures of financial development and hold after controlling for a potential simultaneity and a small sample biases. 2016-11-02T20:56:48Z 2016-11-02T20:56:48Z 2016-09-09 Journal Article Applied Economics 0003-6846 http://hdl.handle.net/10986/25322 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research :: Journal Article Publications & Research Africa Middle East and North Africa Central Africa North Africa West Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic financial development
poverty
CFA Franc Zone
spellingShingle financial development
poverty
CFA Franc Zone
Kiendrebeogo, Youssouf
Minea, Alexandru
Financial Development and Poverty : Evidence from the CFA Franc Zone
geographic_facet Africa
Middle East and North Africa
Central Africa
North Africa
West Africa
description The financial liberalization in the 1980s and early 1990s led the CFA Franc Zone countries to deepen reforms in their financial systems. These reforms fostered financial development, which in turn may have reduced income poverty, as emphasized by several theoretical arguments in the literature. This study aims at estimating the contribution of financial development to poverty alleviation in the CFA Franc Zone. Results based on a panel of CFA Franc Zone countries show that financial development is associated with a drop in the proportion of poor population. Next, financial development reduces the extent to which the income of individuals falls below the poverty line. Moreover, in some cases, the effect of financial development on poverty may be subject to nonlinearities. Finally, financial instability or unstable financial development leading to crises may mitigate the favourable effect of financial development on poverty reduction. These findings are robust to the use of alternative measures of financial development and hold after controlling for a potential simultaneity and a small sample biases.
format Journal Article
author Kiendrebeogo, Youssouf
Minea, Alexandru
author_facet Kiendrebeogo, Youssouf
Minea, Alexandru
author_sort Kiendrebeogo, Youssouf
title Financial Development and Poverty : Evidence from the CFA Franc Zone
title_short Financial Development and Poverty : Evidence from the CFA Franc Zone
title_full Financial Development and Poverty : Evidence from the CFA Franc Zone
title_fullStr Financial Development and Poverty : Evidence from the CFA Franc Zone
title_full_unstemmed Financial Development and Poverty : Evidence from the CFA Franc Zone
title_sort financial development and poverty : evidence from the cfa franc zone
publisher Taylor and Francis
publishDate 2016
url http://hdl.handle.net/10986/25322
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