Financial Development: Does it Contribute to Poverty Reduction in Developing Countries?

Warda Kainat; Hajra Ihsan; Misbah Aslam

doi:https://doi.org/10.5281/zenodo.16894060

Financial Development: Does it Contribute to Poverty Reduction in Developing Countries?

Warda Kainat, Hajra Ihsan, Misbah Aslam

Abstract

This paper employs panel estimation techniques to investigate how a detailed index of financial development comprised of multiple indicators of financial deepening influences the prevalence of poverty in a selected twenty emerging countries from 2004 to 2021. The results of the selected fixed effect model indicate that through various financial indicators, financial development alleviates poverty. Results suggest that governments should pursue development programs for the banking sector and stock markets in order to create diverse platforms and products that will attract low-income and financially disadvantaged families to the financial sectors to aid in poverty mitigation.

Keywords:

Developing Countries , Financial Development , Poverty

Jel Code:

G20, J36, O15

Article Details

Year: 2024

Volume: 45

Issue: 1

Pages: 249 - 266

Accepted: 21.02.2024

DOI:
https://doi.org/10.5281/zenodo.16894060

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How to Cite?

Warda Kainat, Hajra Ihsan, Misbah Aslam (2024). Financial Development: Does it Contribute to Poverty Reduction in Developing Countries?. Journal of Economic Cooperation and Development, 45(1), 249-266. https://doi.org/10.5281/zenodo.16894060