Finance, Inequality, and Poverty: Cross-Country Evidence
While substantial research finds that financial development boosts overall economic growth, the authors study whether financial development is pro-poor: Does financial development disproportionately raise the income of the poor? Using a broad cross...
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| Format: | Policy Research Working Paper |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/06/4966140/finance-inequality-poverty-cross-country-evidence http://hdl.handle.net/10986/14038 |
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okr-10986-140382021-04-23T14:03:21Z Finance, Inequality, and Poverty: Cross-Country Evidence Beck, Thorsten Demirguc-Kunt, Asli Levine, Ross ABSOLUTE POVERTY CAPITAL MARKETS CORPORATE FINANCE DEVELOPMENT BANKS ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE FINANCIAL DEVELOPMENT FINANCIAL ECONOMICS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICES GROSS DOMESTIC PRODUCT GROWTH POLICIES GROWTH RATE INCOME DISTRIBUTION INCOME INEQUALITY INCOME LEVELS INFANT MORTALITY INFLATION RATE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET COMPETITION POLITICAL ECONOMY POVERTY ALLEVIATION PRIVATE SECTOR PRODUCTIVITY ABSOLUTE POVERTY ABSOLUTE VALUE ADVERSE SELECTION AGGREGATE GROWTH AGGREGATE MEASURE ANNUAL GROWTH ANNUAL GROWTH RATE ASYMMETRIC INFORMATION AVERAGE ANNUAL AVERAGE GROWTH AVERAGE INCOME AVERAGE INCOME GROWTH CAPITAL ACCUMULATION CAPITAL MARKETS CENTRAL BANK COMPETITIVENESS CORPORATE FINANCE CORRUPTION COUNTRY REGRESSIONS COUNTRY-SPECIFIC EFFECTS CREDIT CONSTRAINTS CREDIT MARKET CROSS-COUNTRY STUDIES DEBT DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DISTRIBUTION EFFECT DISTRIBUTION FUNCTION DISTRIBUTIONAL CHANGE DISTRIBUTIONAL COMPONENT DISTRIBUTIONAL EFFECT DISTRIBUTIONAL EFFECTS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC PERSPECTIVES ECONOMIC STUDIES EDUCATIONAL ATTAINMENT EMPIRICAL GROWTH LITERATURE EMPIRICAL LITERATURE EMPIRICAL RESULTS EQUAL ACCESS ERROR TERM EXPLANATORY VARIABLES EXPORTS FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR GDP GDP PER CAPITA GINI COEFFICIENT GROSS DOMESTIC PRODUCT GROWTH GROWTH COMPONENT GROWTH DETERMINANTS GROWTH EFFECT GROWTH PRO-POOR GROWTH RATE GROWTH RATES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME GROUPS INCOME GROWTH INCOME GROWTH RATE INCOME INEQUALITY INCOME LEVELS INCOME QUINTILES INCOME SHARE INCOME SHOCKS INCOMES INEQUALITY INEQUALITY CHANGES INEQUALITY FALLS INEQUALITY MEASURES INFANT MORTALITY INFLATION RATE INTERNATIONAL DEVELOPMENT INVESTMENT OPPORTUNITIES LEGAL ORIGIN LINEAR RELATIONSHIP LORENZ CURVE LOW INCOMES MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMICS MEAN INCOME MIDDLE INCOME COUNTRIES MONETARY ECONOMICS NORMAL DISTRIBUTION 0 HYPOTHESIS PER CAPITA GROWTH PER CAPITA GROWTH RATE POINT ESTIMATE POLICY RESEARCH POLITICAL ECONOMY POPULATION GROWTH POPULATION GROWTH RATES POSITIVE EFFECT POSITIVE IMPACT POSITIVE RELATIONSHIP POVERTY POVERTY ALLEVIATION POVERTY GAP POVERTY INCIDENCE POVERTY REDUCTION POVERTY-GROWTH-INEQUALITY TRIANGLE PRIMARY ENROLLMENT PRIMARY SCHOOL PRIVATE SECTOR PRO-GROWTH POLICIES PUBLIC POLICIES PUBLIC SECTOR REAL GDP REDUCING POVERTY RELATIVE INCOME REVERSE CAUSATION SIGNIFICANCE LEVEL SIGNIFICANT CORRELATION SIGNIFICANT EVIDENCE SIGNIFICANT IMPACT SOCIAL SERVICES STANDARD DEVIATION TRADE OPENNESS VALUATION WEALTH Microdata Set While substantial research finds that financial development boosts overall economic growth, the authors study whether financial development is pro-poor: Does financial development disproportionately raise the income of the poor? Using a broad cross-country sample, the authors find that the answer is yes: Financial intermediary development reduces income inequality by disproportionately boosting the income of the poor and therefore reduces poverty. This result is robust to controlling for simultaneity bias and reverse causation. 2013-06-19T20:49:20Z 2013-06-19T20:49:20Z 2004-06 http://documents.worldbank.org/curated/en/2004/06/4966140/finance-inequality-poverty-cross-country-evidence http://hdl.handle.net/10986/14038 English en_US Policy Research Working Paper;No.3338 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
| topic |
ABSOLUTE POVERTY CAPITAL MARKETS CORPORATE FINANCE DEVELOPMENT BANKS ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE FINANCIAL DEVELOPMENT FINANCIAL ECONOMICS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICES GROSS DOMESTIC PRODUCT GROWTH POLICIES GROWTH RATE INCOME DISTRIBUTION INCOME INEQUALITY INCOME LEVELS INFANT MORTALITY INFLATION RATE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET COMPETITION POLITICAL ECONOMY POVERTY ALLEVIATION PRIVATE SECTOR PRODUCTIVITY ABSOLUTE POVERTY ABSOLUTE VALUE ADVERSE SELECTION AGGREGATE GROWTH AGGREGATE MEASURE ANNUAL GROWTH ANNUAL GROWTH RATE ASYMMETRIC INFORMATION AVERAGE ANNUAL AVERAGE GROWTH AVERAGE INCOME AVERAGE INCOME GROWTH CAPITAL ACCUMULATION CAPITAL MARKETS CENTRAL BANK COMPETITIVENESS CORPORATE FINANCE CORRUPTION COUNTRY REGRESSIONS COUNTRY-SPECIFIC EFFECTS CREDIT CONSTRAINTS CREDIT MARKET CROSS-COUNTRY STUDIES DEBT DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DISTRIBUTION EFFECT DISTRIBUTION FUNCTION DISTRIBUTIONAL CHANGE DISTRIBUTIONAL COMPONENT DISTRIBUTIONAL EFFECT DISTRIBUTIONAL EFFECTS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC PERSPECTIVES ECONOMIC STUDIES EDUCATIONAL ATTAINMENT EMPIRICAL GROWTH LITERATURE EMPIRICAL LITERATURE EMPIRICAL RESULTS EQUAL ACCESS ERROR TERM EXPLANATORY VARIABLES EXPORTS FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR GDP GDP PER CAPITA GINI COEFFICIENT GROSS DOMESTIC PRODUCT GROWTH GROWTH COMPONENT GROWTH DETERMINANTS GROWTH EFFECT GROWTH PRO-POOR GROWTH RATE GROWTH RATES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME GROUPS INCOME GROWTH INCOME GROWTH RATE INCOME INEQUALITY INCOME LEVELS INCOME QUINTILES INCOME SHARE INCOME SHOCKS INCOMES INEQUALITY INEQUALITY CHANGES INEQUALITY FALLS INEQUALITY MEASURES INFANT MORTALITY INFLATION RATE INTERNATIONAL DEVELOPMENT INVESTMENT OPPORTUNITIES LEGAL ORIGIN LINEAR RELATIONSHIP LORENZ CURVE LOW INCOMES MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMICS MEAN INCOME MIDDLE INCOME COUNTRIES MONETARY ECONOMICS NORMAL DISTRIBUTION 0 HYPOTHESIS PER CAPITA GROWTH PER CAPITA GROWTH RATE POINT ESTIMATE POLICY RESEARCH POLITICAL ECONOMY POPULATION GROWTH POPULATION GROWTH RATES POSITIVE EFFECT POSITIVE IMPACT POSITIVE RELATIONSHIP POVERTY POVERTY ALLEVIATION POVERTY GAP POVERTY INCIDENCE POVERTY REDUCTION POVERTY-GROWTH-INEQUALITY TRIANGLE PRIMARY ENROLLMENT PRIMARY SCHOOL PRIVATE SECTOR PRO-GROWTH POLICIES PUBLIC POLICIES PUBLIC SECTOR REAL GDP REDUCING POVERTY RELATIVE INCOME REVERSE CAUSATION SIGNIFICANCE LEVEL SIGNIFICANT CORRELATION SIGNIFICANT EVIDENCE SIGNIFICANT IMPACT SOCIAL SERVICES STANDARD DEVIATION TRADE OPENNESS VALUATION WEALTH Microdata Set |
| spellingShingle |
ABSOLUTE POVERTY CAPITAL MARKETS CORPORATE FINANCE DEVELOPMENT BANKS ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE FINANCIAL DEVELOPMENT FINANCIAL ECONOMICS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICES GROSS DOMESTIC PRODUCT GROWTH POLICIES GROWTH RATE INCOME DISTRIBUTION INCOME INEQUALITY INCOME LEVELS INFANT MORTALITY INFLATION RATE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET COMPETITION POLITICAL ECONOMY POVERTY ALLEVIATION PRIVATE SECTOR PRODUCTIVITY ABSOLUTE POVERTY ABSOLUTE VALUE ADVERSE SELECTION AGGREGATE GROWTH AGGREGATE MEASURE ANNUAL GROWTH ANNUAL GROWTH RATE ASYMMETRIC INFORMATION AVERAGE ANNUAL AVERAGE GROWTH AVERAGE INCOME AVERAGE INCOME GROWTH CAPITAL ACCUMULATION CAPITAL MARKETS CENTRAL BANK COMPETITIVENESS CORPORATE FINANCE CORRUPTION COUNTRY REGRESSIONS COUNTRY-SPECIFIC EFFECTS CREDIT CONSTRAINTS CREDIT MARKET CROSS-COUNTRY STUDIES DEBT DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DISTRIBUTION EFFECT DISTRIBUTION FUNCTION DISTRIBUTIONAL CHANGE DISTRIBUTIONAL COMPONENT DISTRIBUTIONAL EFFECT DISTRIBUTIONAL EFFECTS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC PERSPECTIVES ECONOMIC STUDIES EDUCATIONAL ATTAINMENT EMPIRICAL GROWTH LITERATURE EMPIRICAL LITERATURE EMPIRICAL RESULTS EQUAL ACCESS ERROR TERM EXPLANATORY VARIABLES EXPORTS FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR GDP GDP PER CAPITA GINI COEFFICIENT GROSS DOMESTIC PRODUCT GROWTH GROWTH COMPONENT GROWTH DETERMINANTS GROWTH EFFECT GROWTH PRO-POOR GROWTH RATE GROWTH RATES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME GROUPS INCOME GROWTH INCOME GROWTH RATE INCOME INEQUALITY INCOME LEVELS INCOME QUINTILES INCOME SHARE INCOME SHOCKS INCOMES INEQUALITY INEQUALITY CHANGES INEQUALITY FALLS INEQUALITY MEASURES INFANT MORTALITY INFLATION RATE INTERNATIONAL DEVELOPMENT INVESTMENT OPPORTUNITIES LEGAL ORIGIN LINEAR RELATIONSHIP LORENZ CURVE LOW INCOMES MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMICS MEAN INCOME MIDDLE INCOME COUNTRIES MONETARY ECONOMICS NORMAL DISTRIBUTION 0 HYPOTHESIS PER CAPITA GROWTH PER CAPITA GROWTH RATE POINT ESTIMATE POLICY RESEARCH POLITICAL ECONOMY POPULATION GROWTH POPULATION GROWTH RATES POSITIVE EFFECT POSITIVE IMPACT POSITIVE RELATIONSHIP POVERTY POVERTY ALLEVIATION POVERTY GAP POVERTY INCIDENCE POVERTY REDUCTION POVERTY-GROWTH-INEQUALITY TRIANGLE PRIMARY ENROLLMENT PRIMARY SCHOOL PRIVATE SECTOR PRO-GROWTH POLICIES PUBLIC POLICIES PUBLIC SECTOR REAL GDP REDUCING POVERTY RELATIVE INCOME REVERSE CAUSATION SIGNIFICANCE LEVEL SIGNIFICANT CORRELATION SIGNIFICANT EVIDENCE SIGNIFICANT IMPACT SOCIAL SERVICES STANDARD DEVIATION TRADE OPENNESS VALUATION WEALTH Microdata Set Beck, Thorsten Demirguc-Kunt, Asli Levine, Ross Finance, Inequality, and Poverty: Cross-Country Evidence |
| relation |
Policy Research Working Paper;No.3338 |
| description |
While substantial research finds that
financial development boosts overall economic growth, the
authors study whether financial development is pro-poor:
Does financial development disproportionately raise the
income of the poor? Using a broad cross-country sample, the
authors find that the answer is yes: Financial intermediary
development reduces income inequality by disproportionately
boosting the income of the poor and therefore reduces
poverty. This result is robust to controlling for
simultaneity bias and reverse causation. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Beck, Thorsten Demirguc-Kunt, Asli Levine, Ross |
| author_facet |
Beck, Thorsten Demirguc-Kunt, Asli Levine, Ross |
| author_sort |
Beck, Thorsten |
| title |
Finance, Inequality, and Poverty: Cross-Country Evidence |
| title_short |
Finance, Inequality, and Poverty: Cross-Country Evidence |
| title_full |
Finance, Inequality, and Poverty: Cross-Country Evidence |
| title_fullStr |
Finance, Inequality, and Poverty: Cross-Country Evidence |
| title_full_unstemmed |
Finance, Inequality, and Poverty: Cross-Country Evidence |
| title_sort |
finance, inequality, and poverty: cross-country evidence |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/06/4966140/finance-inequality-poverty-cross-country-evidence http://hdl.handle.net/10986/14038 |
| _version_ |
1764430396914663424 |