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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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 |
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Digital Repository |
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World Bank Open Knowledge Repository |
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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 |