Local Financial Development and Household Welfare: Microevidence from Thai Households

Oliver Gloede and Ornsiri Rungruxsirivorn

No 38 [rev.], Proceedings of the German Development Economics Conference, Hannover 2010 from Verein für Socialpolitik, Research Committee Development Economics

Abstract: We provide new micro evidence on the discussion about the relationship between financial development and welfare. Relying on the concept of local financial development our analysis focuses on three dimensions of household welfare: vulnerability to poverty, investment, and consumption smoothing. Even though we cannot find a significant effect on vulnerability, we provide evidence that financial development is correlated with higher investment and better possibilities to smooth consumption. The extent of both effects is also economically significant. Our results hold for alternative specifications and variations in the measurement of financial development.

Keywords: credit rationing; investment; consumption; consumption smoothing; growth (search for similar items in EconPapers)
JEL-codes: D12 D24 G21 O16 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-dev and nep-fdg
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Journal Article: Local Financial Development and Household Welfare: Microevidence from Thai Households (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:gdec10:38r

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