Financial development, institutions and poverty alleviation: an empirical analysis

Alessandra Cepparulo, Juan Cuestas and Maurizio Intartaglia

No wp2016-2, Bank of Estonia Working Papers from Bank of Estonia

Abstract: The aim of this paper is to analyse empirically whether the level of institutional quality influences how financial development affects poverty for a sample of developing countries covering the period from 1984 to 2012. Using an interaction term constructed as a product between financial development and institutional quality we find that the pro-poor impact of financial development decreases as the quality of institutions rises. Such a differential effect can be ascribed to the capacity of banks to provide functions that mimic those performed by an institutional framework that works well. The results of this paper can be used for policy management

Keywords: financial development; institutional quality; poverty alleviation; developing countries (search for similar items in EconPapers)
JEL-codes: G20 I32 O17 (search for similar items in EconPapers)
Date: 2016-05-03, Revised 2016-05-03
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Financial development, institutions, and poverty alleviation: an empirical analysis (2017)
Working Paper: Financial development, institutions and poverty alleviation: an empirical analysis (2015)
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