EconPapers    
Economics at your fingertips  
 

The impact of banking services on poverty: Evidence from sub-district level for Bangladesh

Kazi Iqbal (), Paritosh K. Roy and Shamsul Alam

Journal of Asian Economics, 2020, vol. 66, issue C

Abstract: The extent to which banking services can reduce poverty is under question as recent experimental evidence has suggested that there is no impact. Our findings, based on survey and administrative data, are to the contrary. We compile a unique dataset of banking measures and poverty indicators at the level of Bangladesh’s 544 administrative sub-districts. We find a relationship between banking services and poverty reduction, and show that the relationship works through the deposit channel rather than the credit channel. We exploit variation in branch placement by sub-district between 2010 and 2015 to implement a difference-in-difference estimation approach. We also estimate ordinary least squares and fixed effects models to explore the role of factors other than banking services in poverty incidence. Broad findings supporting a role for the deposit channel, but not the credit channel, are confirmed. These results have significant policy implications as governments in developing countries are actively involved in promoting financial inclusion through the banking sector.

Keywords: Financial inclusion; Banking service; Poverty reduction; Bangladesh (search for similar items in EconPapers)
JEL-codes: G21 I32 O16 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1049007818302057
Full text for ScienceDirect subscribers only

Related works:
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:eee:asieco:v:66:y:2020:i:c:s1049007818302057

DOI: 10.1016/j.asieco.2019.101154

Access Statistics for this article

Journal of Asian Economics is currently edited by C. Wiemer

More articles in Journal of Asian Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-10-07
Handle: RePEc:eee:asieco:v:66:y:2020:i:c:s1049007818302057