Nexus of Financial Architecture, Vulnerable Employment and Poverty: The Stimulus of Information Technology

This study is based on 13 years data of from 152 countries. The basic question in this study is to identify the nature of relations between financial architecture and poverty. The identification of the nature of this relationship provides a policy direction for required changes in the system. Based on the empirical pieces of evidence, it is concluded that financial architecture plays an important role in the determination of employment conditions and business opportunities. The wealth accumulation, domestic credit to private sector, number of borrowers from commercial banks, interest rate spread, tax to GDP ratio, subsidies, and external financing have been included as elements of contemporary financial architecture. This study recognizes financial institutions and information technology’s important role in alleviating poverty and vulnerable employment. It is noted that interest rate spread is a significant cause of growing poverty. Contrary to common opinion, this study does not find a positive association between wealth accumulation and growing poverty.