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Does Financial Inclusion Affect Poverty? An Analysis of Developing Countries

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  • Vinay Kumar

    (Department of Liberal Arts, Indian Institute of Technology Bhilai, India)

Abstract

This study examines the poverty level of developing countries in terms of banking sector development and financial inclusion factors, using the panel data of 68 developing countries from diverse sources. This study used a fixed effects panel data regression. The results revealed a negative relationship between poverty level and banking-centered financial development including financial inclusion.

Suggested Citation

  • Vinay Kumar, 2024. "Does Financial Inclusion Affect Poverty? An Analysis of Developing Countries," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 4(3), pages 1-6.
    • Handle: RePEc:ayb:jrnael:108
    DOI: 2024/07/01
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    References listed on IDEAS

    as
    1. Gazi Salah Uddin & Phouphet Kyophilavong & Nasim Sydee, 2012. "The Casual Nexus of Banking Sector Development and Poverty Reduction in Bangladesh," International Journal of Economics and Financial Issues, Econjournals, vol. 2(3), pages 304-311.
    2. Ahamed, M. Mostak & Mallick, Sushanta K., 2019. "Is financial inclusion good for bank stability? International evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 403-427.
    3. Boukhatem, Jamel, 2016. "Assessing the direct effect of financial development on poverty reduction in a panel of low- and middle-income countries," Research in International Business and Finance, Elsevier, vol. 37(C), pages 214-230.
    4. Mandira Sarma, 2012. "Index of Financial Inclusion – A measure of financial sector inclusiveness," Competence Centre on Money, Trade, Finance and Development 1207, Hochschule fuer Technik und Wirtschaft, Berlin.
    5. Md Abdullah Omar & Kazuo Inaba, 2020. "Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-25, December.
    6. Hossein Jalilian & Colin Kirkpatrick, 2005. "Does Financial Development Contribute to Poverty Reduction?," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 636-656.
    7. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    More about this item

    Keywords

    Financial inclusion; Poverty; Banking sector development; Economic growth;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other

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