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Financial Development Contribution to Economic Growth and Poverty Reduction

Author

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  • Junaidi Junaidi

    (Universitas Muhammadiyah Palopo)

Abstract

This study investigates the bank intermediation role (e.g., deposits, financing, and offices) contribution to enhancing Indonesian districts’ gross domestic product (GDP) and reducing poverty. The empirical results indicate that banks have applied the channeling role toward redistributing the capital from lender to borrower. Besides, a crucial role has been played in developing economics and poverty alleviation. This study contributes to economic literature practical and local government’s decision-making process through developing and testing a model of economic growth and poverty determinants. It offered new insights into the determinants of bank principles in a financial system.

Suggested Citation

  • Junaidi Junaidi, 2025. "Financial Development Contribution to Economic Growth and Poverty Reduction," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 4516-4537, March.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02032-6
    DOI: 10.1007/s13132-024-02032-6
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Indonesian bank offices; Deposits; Financing; Economic growth; Poverty reduction;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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