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Financial Inclusion And Poverty: The Case Of Peru

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  • Julian SCHMIED
  • Ana MARR

Abstract

Poverty is ostensibly a multi-dimensional issue. Economic, social and political forces play a role in its creation as well as in its eradication. Financial inclusion, understood as the provision of micro-loans to populations that have never before had access to lending, has for some time been considered a useful way to help reduce poverty. In this paper, we employ a panel data analysis based on a unique 2008-2010 database on financial inclusion in Peru. Exploiting the variation between departments, our regression results show that financial inclusion does have an alleviating effect on various indicators of poverty. However, coefficients are rather small. Instead, the access to communication technology, such as the internet, plays a superior role in explaining poverty in Peru.

Suggested Citation

  • Julian SCHMIED & Ana MARR, 2016. "Financial Inclusion And Poverty: The Case Of Peru," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 16(2), pages 29-40.
  • Handle: RePEc:eaa:eerese:v:16:y2016:i:2_3
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    References listed on IDEAS

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    2. Paul Gertler & David I. Levine & Enrico Moretti, 2009. "Do microfinance programs help families insure consumption against illness?," Health Economics, John Wiley & Sons, Ltd., vol. 18(3), pages 257-273, March.
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    5. Beck, Thorsten & Levine, Ross & Levkov, Alexey, 2007. "Big bad banks ? the impact of U.S. branch deregulation on income distribution," Policy Research Working Paper Series 4330, The World Bank.
    6. Ana MARR & Janina LEON & Fatima PONCE, 2014. "Financial Inclusion of the Poor in Peru: Explanatory factors and determinants," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 101-122.
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    Cited by:

    1. 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.
    2. Tran Huong Thi Thanh & Le Ha Thi Thu, 2021. "The Impact of Financial Inclusion on Poverty Reduction," Asian Journal of Law and Economics, De Gruyter, vol. 12(1), pages 95-119, April.
    3. Guillermo Boitano & Deybi Franco Abanto, 2020. "Challenges of financial inclusion policies in Peru," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 12(1), pages 89-117, June.
    4. Naishu Yu & Yanzhe Wang, 2021. "Can Digital Inclusive Finance Narrow the Chinese Urban–Rural Income Gap? The Perspective of the Regional Urban–Rural Income Structure," Sustainability, MDPI, Open Access Journal, vol. 13(11), pages 1-18, June.

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