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Financial Constraints and Poverty

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  • Kodila-Tedika, Oasis
  • Ngunza Maniata, Kevin

Abstract

This article revisits again relationship between financial sector and poverty, by testing the hypothesis according to which it is primarily financial constraints that affect poverty before the size of the financial sector. We find empirically proofs, which suggest that the differential of financial constraints is negatively linked at the level of poverty. This effect is robust in the control of deepening or financial development. Besides, it has an unstable sign. It persists even in the controls of other variables and economic technical changes. In conclusion, the countries with higher financial constraints are those where poverty is rife.

Suggested Citation

  • Kodila-Tedika, Oasis & Ngunza Maniata, Kevin, 2018. "Financial Constraints and Poverty," MPRA Paper 84839, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:84839
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    References listed on IDEAS

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    Cited by:

    1. Kodila-Tedika, Oasis & Mulunda Kabange, Martin, 2018. "Constitutional instability and Poverty: Some Empirical Evidence," MPRA Paper 84501, University Library of Munich, Germany.

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    More about this item

    Keywords

    Financial development; Poverty; financial constraints;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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