Financial Channels, Property Rights, and Poverty : A Sub-Saharan African Perspective

Studies on the link between financial development and poverty have been inconclusive. Some claim that deeper financial sectors should improve the allocation of capital by allowing entrepreneurs greater access to finance, which should particularly f...

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Main Authors:	Singh, Raju Jan, Huang, Yifei
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	CREDIT MARKETS DEPOSIT FINANCIAL SERVICES ECONOMIC GROWTH DEPOSITS BROAD MONEY LEGAL ENVIRONMENT DEFAULTS DEBTORS INTEREST INTEREST RATE PROPERTY RIGHTS PRIVATE CREDIT EXCHANGE BANKING SYSTEM POOL OF BORROWERS LIQUIDITY DEVELOPING COUNTRIES ENTREPRENEURS POLITICAL ECONOMY DEPOSIT MONEY BANKS ACCESS TO SAVING LOAN DURABLE ASSETS BORROWERS PRIVATE PROPERTY PROBABILITY OF REPAYMENT DUMMY VARIABLE SAVING CENTRAL BANKS CREDITORS INFLATION INTERNATIONAL BANK CREDITOR INSTRUMENTS INTEREST RATES ON LOANS LEGAL SYSTEMS ALLOCATION OF CAPITAL FINANCIAL INSTITUTION COMMERCIAL BANK CONTRACT ENFORCEMENT RISK DIVERSIFICATION BANK ASSETS CONTRACTS INCOME INEQUALITY INTEREST RATES MONETARY FUND FINANCIAL INSTITUTIONS MARKETS MORAL SUASION RETURN INFLATION RATE CREDITOR RIGHTS COMMERCIAL BANK ASSETS LENDERS LOANS RISK SHARING INFORMATION ON BORROWERS BANK CREDIT GROSS DOMESTIC PRODUCT RULE OF LAW FINANCIAL SYSTEM FINANCE BANK POLICY INFORMATION ASYMMETRY TRANSACTIONS MACROECONOMIC ENVIRONMENT INVESTORS HUMAN CAPITAL PROPERTY RIGHT CREDIT CONSTRAINTS GOOD CAPITAL INTERNATIONAL FINANCIAL STATISTICS TRANSPARENCY FINANCIAL STABILITY LACK OF ACCESS LLC FUTURE ACCESS TO FINANCE BANK CREDIT INCOME VARIABILITY MARKET CONSTRAINTS CONTRACT PRICE STABILITY REPAYMENT PROPERTY AMOUNT OF CREDIT INCOME INEQUALITIES FLOW OF CREDIT BALANCE SHEET MARKET DEFAULT FIXED EFFECT MODELS TRADE LIBERALIZATION EXPROPRIATION ECONOMIC DEVELOPMENT ECONOMIC OPPORTUNITIES FINANCIAL DEVELOPMENT DURABLE INVESTMENT EXTREME POVERTY LEGAL PROTECTION DOMESTIC CREDIT COMMERCIAL BANKS SHARE CREDIT RATIONING HOUSEHOLDS COLLATERAL POVERTY RIGHTS OF CREDITORS FINANCIAL MARKETS EARNINGS PROFIT LEGAL RIGHTS OF CREDITORS FINANCIAL STRUCTURE GREATER ACCESS INVESTMENTS LENDING CONSUMER PRICE INDEX CHILD LABOR CREDIT GROWTH MACROECONOMIC POLICIES INSTRUMENT FIXED COST MICRO DATA REMITTANCES BANK BRANCHES LABOR MARKETS LIABILITIES COMMON LAW LEGAL RIGHTS FINANCIAL SECTOR DEVELOPMENT CREDIT MARKET INEQUALITY
Online Access:	http://documents.worldbank.org/curated/en/2016/02/25884473/financial-channels-property-rights-poverty-sub-saharan-african-perspective http://hdl.handle.net/10986/23887

id	okr-10986-23887
recordtype	oai_dc
spelling	okr-10986-238872021-04-23T14:04:18Z Financial Channels, Property Rights, and Poverty : A Sub-Saharan African Perspective Singh, Raju Jan Huang, Yifei CREDIT MARKETS DEPOSIT FINANCIAL SERVICES ECONOMIC GROWTH DEPOSITS BROAD MONEY LEGAL ENVIRONMENT DEFAULTS DEBTORS INTEREST INTEREST RATE PROPERTY RIGHTS PRIVATE CREDIT EXCHANGE BANKING SYSTEM POOL OF BORROWERS LIQUIDITY DEVELOPING COUNTRIES ENTREPRENEURS POLITICAL ECONOMY DEPOSIT MONEY BANKS ACCESS TO SAVING LOAN DURABLE ASSETS BORROWERS PRIVATE PROPERTY PROBABILITY OF REPAYMENT DUMMY VARIABLE SAVING CENTRAL BANKS CREDITORS INFLATION INTERNATIONAL BANK CREDITOR INSTRUMENTS INTEREST RATES ON LOANS LEGAL SYSTEMS ALLOCATION OF CAPITAL FINANCIAL INSTITUTION COMMERCIAL BANK CONTRACT ENFORCEMENT RISK DIVERSIFICATION BANK ASSETS CONTRACTS INCOME INEQUALITY INTEREST RATES MONETARY FUND FINANCIAL INSTITUTIONS MARKETS MORAL SUASION RETURN INFLATION RATE CREDITOR RIGHTS COMMERCIAL BANK ASSETS LENDERS LOANS RISK SHARING INFORMATION ON BORROWERS BANK CREDIT GROSS DOMESTIC PRODUCT RULE OF LAW FINANCIAL SYSTEM FINANCE BANK POLICY INFORMATION ASYMMETRY TRANSACTIONS MACROECONOMIC ENVIRONMENT INVESTORS HUMAN CAPITAL PROPERTY RIGHT CREDIT CONSTRAINTS GOOD CAPITAL INTERNATIONAL FINANCIAL STATISTICS TRANSPARENCY FINANCIAL STABILITY LACK OF ACCESS LLC FUTURE ACCESS TO FINANCE BANK CREDIT INCOME VARIABILITY MARKET CONSTRAINTS CONTRACT PRICE STABILITY REPAYMENT PROPERTY AMOUNT OF CREDIT INCOME INEQUALITIES FLOW OF CREDIT BALANCE SHEET MARKET DEFAULT FIXED EFFECT MODELS TRADE LIBERALIZATION EXPROPRIATION ECONOMIC DEVELOPMENT ECONOMIC OPPORTUNITIES FINANCIAL DEVELOPMENT DURABLE INVESTMENT EXTREME POVERTY LEGAL PROTECTION DOMESTIC CREDIT COMMERCIAL BANKS SHARE CREDIT RATIONING HOUSEHOLDS COLLATERAL POVERTY RIGHTS OF CREDITORS FINANCIAL MARKETS EARNINGS PROFIT LEGAL RIGHTS OF CREDITORS FINANCIAL STRUCTURE GREATER ACCESS INVESTMENTS LENDING CONSUMER PRICE INDEX CHILD LABOR CREDIT GROWTH MACROECONOMIC POLICIES INSTRUMENT FIXED COST MICRO DATA REMITTANCES BANK BRANCHES LABOR MARKETS LIABILITIES COMMON LAW LEGAL RIGHTS FINANCIAL SECTOR DEVELOPMENT CREDIT MARKET INEQUALITY Studies on the link between financial development and poverty have been inconclusive. Some claim that deeper financial sectors should improve the allocation of capital by allowing entrepreneurs greater access to finance, which should particularly favor the poor. Others argue that improvements in the financial system primarily benefit the rich and politically connected. The literature has also been ambiguous about the channels through which finance may be associated with lower poverty (deposits versus credit). Looking at a sample of 37 countries in Sub-Saharan Africa from 1992 through 2006, the paper suggests that financial deepening is associated with lower poverty through different channels depending on the strength of property rights. In the absence of well-defined and enforced property rights, wider access to saving and risk-sharing instruments is accompanied by a reduction in poverty. Only once property rights grow stronger is credit associated with lower poverty. 2016-03-08T23:23:56Z 2016-03-08T23:23:56Z 2016-02 Working Paper http://documents.worldbank.org/curated/en/2016/02/25884473/financial-channels-property-rights-poverty-sub-saharan-african-perspective http://hdl.handle.net/10986/23887 English en_US Policy Research Working Paper;No. 7559 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Haiti
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	CREDIT MARKETS DEPOSIT FINANCIAL SERVICES ECONOMIC GROWTH DEPOSITS BROAD MONEY LEGAL ENVIRONMENT DEFAULTS DEBTORS INTEREST INTEREST RATE PROPERTY RIGHTS PRIVATE CREDIT EXCHANGE BANKING SYSTEM POOL OF BORROWERS LIQUIDITY DEVELOPING COUNTRIES ENTREPRENEURS POLITICAL ECONOMY DEPOSIT MONEY BANKS ACCESS TO SAVING LOAN DURABLE ASSETS BORROWERS PRIVATE PROPERTY PROBABILITY OF REPAYMENT DUMMY VARIABLE SAVING CENTRAL BANKS CREDITORS INFLATION INTERNATIONAL BANK CREDITOR INSTRUMENTS INTEREST RATES ON LOANS LEGAL SYSTEMS ALLOCATION OF CAPITAL FINANCIAL INSTITUTION COMMERCIAL BANK CONTRACT ENFORCEMENT RISK DIVERSIFICATION BANK ASSETS CONTRACTS INCOME INEQUALITY INTEREST RATES MONETARY FUND FINANCIAL INSTITUTIONS MARKETS MORAL SUASION RETURN INFLATION RATE CREDITOR RIGHTS COMMERCIAL BANK ASSETS LENDERS LOANS RISK SHARING INFORMATION ON BORROWERS BANK CREDIT GROSS DOMESTIC PRODUCT RULE OF LAW FINANCIAL SYSTEM FINANCE BANK POLICY INFORMATION ASYMMETRY TRANSACTIONS MACROECONOMIC ENVIRONMENT INVESTORS HUMAN CAPITAL PROPERTY RIGHT CREDIT CONSTRAINTS GOOD CAPITAL INTERNATIONAL FINANCIAL STATISTICS TRANSPARENCY FINANCIAL STABILITY LACK OF ACCESS LLC FUTURE ACCESS TO FINANCE BANK CREDIT INCOME VARIABILITY MARKET CONSTRAINTS CONTRACT PRICE STABILITY REPAYMENT PROPERTY AMOUNT OF CREDIT INCOME INEQUALITIES FLOW OF CREDIT BALANCE SHEET MARKET DEFAULT FIXED EFFECT MODELS TRADE LIBERALIZATION EXPROPRIATION ECONOMIC DEVELOPMENT ECONOMIC OPPORTUNITIES FINANCIAL DEVELOPMENT DURABLE INVESTMENT EXTREME POVERTY LEGAL PROTECTION DOMESTIC CREDIT COMMERCIAL BANKS SHARE CREDIT RATIONING HOUSEHOLDS COLLATERAL POVERTY RIGHTS OF CREDITORS FINANCIAL MARKETS EARNINGS PROFIT LEGAL RIGHTS OF CREDITORS FINANCIAL STRUCTURE GREATER ACCESS INVESTMENTS LENDING CONSUMER PRICE INDEX CHILD LABOR CREDIT GROWTH MACROECONOMIC POLICIES INSTRUMENT FIXED COST MICRO DATA REMITTANCES BANK BRANCHES LABOR MARKETS LIABILITIES COMMON LAW LEGAL RIGHTS FINANCIAL SECTOR DEVELOPMENT CREDIT MARKET INEQUALITY
spellingShingle	CREDIT MARKETS DEPOSIT FINANCIAL SERVICES ECONOMIC GROWTH DEPOSITS BROAD MONEY LEGAL ENVIRONMENT DEFAULTS DEBTORS INTEREST INTEREST RATE PROPERTY RIGHTS PRIVATE CREDIT EXCHANGE BANKING SYSTEM POOL OF BORROWERS LIQUIDITY DEVELOPING COUNTRIES ENTREPRENEURS POLITICAL ECONOMY DEPOSIT MONEY BANKS ACCESS TO SAVING LOAN DURABLE ASSETS BORROWERS PRIVATE PROPERTY PROBABILITY OF REPAYMENT DUMMY VARIABLE SAVING CENTRAL BANKS CREDITORS INFLATION INTERNATIONAL BANK CREDITOR INSTRUMENTS INTEREST RATES ON LOANS LEGAL SYSTEMS ALLOCATION OF CAPITAL FINANCIAL INSTITUTION COMMERCIAL BANK CONTRACT ENFORCEMENT RISK DIVERSIFICATION BANK ASSETS CONTRACTS INCOME INEQUALITY INTEREST RATES MONETARY FUND FINANCIAL INSTITUTIONS MARKETS MORAL SUASION RETURN INFLATION RATE CREDITOR RIGHTS COMMERCIAL BANK ASSETS LENDERS LOANS RISK SHARING INFORMATION ON BORROWERS BANK CREDIT GROSS DOMESTIC PRODUCT RULE OF LAW FINANCIAL SYSTEM FINANCE BANK POLICY INFORMATION ASYMMETRY TRANSACTIONS MACROECONOMIC ENVIRONMENT INVESTORS HUMAN CAPITAL PROPERTY RIGHT CREDIT CONSTRAINTS GOOD CAPITAL INTERNATIONAL FINANCIAL STATISTICS TRANSPARENCY FINANCIAL STABILITY LACK OF ACCESS LLC FUTURE ACCESS TO FINANCE BANK CREDIT INCOME VARIABILITY MARKET CONSTRAINTS CONTRACT PRICE STABILITY REPAYMENT PROPERTY AMOUNT OF CREDIT INCOME INEQUALITIES FLOW OF CREDIT BALANCE SHEET MARKET DEFAULT FIXED EFFECT MODELS TRADE LIBERALIZATION EXPROPRIATION ECONOMIC DEVELOPMENT ECONOMIC OPPORTUNITIES FINANCIAL DEVELOPMENT DURABLE INVESTMENT EXTREME POVERTY LEGAL PROTECTION DOMESTIC CREDIT COMMERCIAL BANKS SHARE CREDIT RATIONING HOUSEHOLDS COLLATERAL POVERTY RIGHTS OF CREDITORS FINANCIAL MARKETS EARNINGS PROFIT LEGAL RIGHTS OF CREDITORS FINANCIAL STRUCTURE GREATER ACCESS INVESTMENTS LENDING CONSUMER PRICE INDEX CHILD LABOR CREDIT GROWTH MACROECONOMIC POLICIES INSTRUMENT FIXED COST MICRO DATA REMITTANCES BANK BRANCHES LABOR MARKETS LIABILITIES COMMON LAW LEGAL RIGHTS FINANCIAL SECTOR DEVELOPMENT CREDIT MARKET INEQUALITY Singh, Raju Jan Huang, Yifei Financial Channels, Property Rights, and Poverty : A Sub-Saharan African Perspective
geographic_facet	Africa Haiti
relation	Policy Research Working Paper;No. 7559
description	Studies on the link between financial development and poverty have been inconclusive. Some claim that deeper financial sectors should improve the allocation of capital by allowing entrepreneurs greater access to finance, which should particularly favor the poor. Others argue that improvements in the financial system primarily benefit the rich and politically connected. The literature has also been ambiguous about the channels through which finance may be associated with lower poverty (deposits versus credit). Looking at a sample of 37 countries in Sub-Saharan Africa from 1992 through 2006, the paper suggests that financial deepening is associated with lower poverty through different channels depending on the strength of property rights. In the absence of well-defined and enforced property rights, wider access to saving and risk-sharing instruments is accompanied by a reduction in poverty. Only once property rights grow stronger is credit associated with lower poverty.
format	Working Paper
author	Singh, Raju Jan Huang, Yifei
author_facet	Singh, Raju Jan Huang, Yifei
author_sort	Singh, Raju Jan
title	Financial Channels, Property Rights, and Poverty : A Sub-Saharan African Perspective
title_short	Financial Channels, Property Rights, and Poverty : A Sub-Saharan African Perspective
title_full	Financial Channels, Property Rights, and Poverty : A Sub-Saharan African Perspective
title_fullStr	Financial Channels, Property Rights, and Poverty : A Sub-Saharan African Perspective
title_full_unstemmed	Financial Channels, Property Rights, and Poverty : A Sub-Saharan African Perspective
title_sort	financial channels, property rights, and poverty : a sub-saharan african perspective
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/02/25884473/financial-channels-property-rights-poverty-sub-saharan-african-perspective http://hdl.handle.net/10986/23887
_version_	1764455080558329856

Financial Channels, Property Rights, and Poverty : A Sub-Saharan African Perspective

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