How has financial deepening affected poverty reduction in India?: empirical analysis using state-level panel data

Takeshi Inoue and Shigeyuki Hamori

No 249, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper examines empirically whether financial deepening has contributed to poverty reduction in India. Using unbalanced panel data for 28 states and union territories between 1973 and 2004, we estimate models in which the poverty ratio is explained by financial deepening, controlling for international openness, inflation rate, and economic growth. From the dynamic generalised method of moments (GMM) estimation, we find that financial deepening and economic growth alleviate poverty, while international openness and the inflation rate have the opposite effect. These results are robust to changes in the poverty ratios in rural areas, urban areas, and the whole economy.

Keywords: India; Finance; Poverty; Poverty Reduction; GMM; Financial Deepening (search for similar items in EconPapers)
JEL-codes: G20 J30 O11 (search for similar items in EconPapers)
Date: 2010-08
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 249. 2010-08

Downloads: (external link)
https://ir.ide.go.jp/record/37922/files/IDP000249_001.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: How has financial deepening affected poverty reduction in India? Empirical analysis using state-level panel data (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jet:dpaper:dpaper249

Ordering information: This working paper can be ordered from
Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN
http://www.ide.go.jp/English/Publish/Order

Access Statistics for this paper

More papers in IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO) Contact information at EDIRC.
Bibliographic data for series maintained by Michitaka Imamitsu ().