IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Financial Development and Poverty: a Panel Data Analysis

Listed author(s):
  • Pablo Ordóñez


The relationship between financial development and poverty is one that has not been extensively explored in the literature. This is the main objective of this paper. With a panel dataset of 147 countries between 1960 and 2008, and using infant mortality as a proxy indicator of poverty, the results show that the relationship between financial development and infant mortality is negative. This means that higher levels of financial development are associated with lower levels of poverty. The result is important since it already controls for the effect that economic growth has on poverty reduction, given the well documented fact that financial development has a positive effect on economic growth. The results are robust to the use of other variables as indicators of financial development, as the long-run relationship is still negative. The findings in this paper highlight the importance of financial development in poverty reduction, and suggest that future research could try and explain what are the mechanisms behind this relationship.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by UNIVERSIDAD ICESI in its series BORRADORES DE ECONOMÍA Y FINANZAS with number 010024.

in new window

Length: 54
Date of creation: 02 Sep 2012
Handle: RePEc:col:000130:010024
Contact details of provider:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:col:000130:010024. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Coordinador ICESI)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.