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Financial Liberalization and Poverty: Channels of Influence

Philip Arestis and Asena Caner

Economics Working Paper Archive from Levy Economics Institute

Abstract: Financial development and its effects on the economic development of a country has recently been one of the most prolific areas of research in the fields of development, finance, and international economics. So far, however, very little work has been done to analyze comprehensively the relationship between financial liberalization and poverty. There is still controversy about the exact role and the effectiveness of financial liberalization on improving economic conditions in developing countries. This paper aims to contribute to this debate by critically reviewing the relevant literature and looking closely at the channels through which financial liberalization can affect poverty.

Date: 2004-07
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