Financial development and poverty reduction nexus: A cointegration and causality analysis in Bangladesh

Gazi Salah Uddin, Muhammad Shahbaz, Mohamed Arouri and Frédéric Teulon

Economic Modelling, 2014, vol. 36, issue C, 405-412

Abstract: This paper contributes to the literature by investigating the relationship between financial development, economic growth and poverty reduction in Bangladesh using quarter frequency data over the period of 1975–2011. This issue is of importance for developing economics given the role of financial sector in mobilizing and allocating savings into productive investments. We use an innovative empirical approach based on ARDL cointegration with structural breaks. Our findings show that a long-run relationship between financial development, economic growth and poverty reduction exists in Bangladesh. Financial development helps to reduce poverty, but its effect is not linear.

Keywords: Financial development; Economic growth; Poverty (search for similar items in EconPapers)
JEL-codes: G21 O1 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (86)

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Working Paper: Financial Development and Poverty Reduction Nexus:A Cointegration and Causality Analysis in Bangladesh (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:36:y:2014:i:c:p:405-412

DOI: 10.1016/j.econmod.2013.09.049

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