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:	financial development poverty CFA Franc Zone
Online Access:	http://hdl.handle.net/10986/25322

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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
_version_	1764458960888266752

Financial Development and Poverty : Evidence from the CFA Franc Zone

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