scholarly journals Financial Development and Poverty Reduction: Evidence from Selected African Countries

2017 ◽  
Vol 8 (4) ◽  
pp. 90 ◽  
Author(s):  
Yaya Keho
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Financial Development ◽  
Cote D'ivoire ◽  
Poverty Reduction ◽  
Côte D’Ivoire ◽  
Financial Deepening ◽  
African Countries ◽  
Long Run ◽  
Positive Effect

This paper examines the relationship between financial development, economic growth and poverty reduction in nine African countries for the period 1970-2013. It uses the ARDL bounds testing approach. The results show evidence of long-run relationship among the variables in height countries with GDP and financial deepening having a positive effect on poverty reduction in five countries (Benin, Cameroon, Cote d’Ivoire, Gabon and South Africa), and poverty reduction having a positive effect on economic growth in three countries (Ghana, Nigeria and Senegal). The study also reveals bidirectional long-run causality between economic growth and poverty reduction in Cote d’Ivoire, Gabon and South Africa, and bidirectional long-run causality between finance and poverty reduction in Benin, Cameroon and South Africa. These findings suggest that policies aimed at increasing economic growth and improving access to credit would reduce poverty but also that measures of poverty reduction would lead to economic growth and financial deepening in these countries.

scholarly journals Financial Development and Economic Growth in Developing Countries

2018 ◽  
Vol 1 (2) ◽  
pp. p94
Author(s):  
Kando Serge Gbagbeu
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Cote D'ivoire ◽  
Côte D’Ivoire ◽  
Cote D’Ivoire ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Côte D'ivoire ◽  
Long Run ◽  
Short Run

In this study, we concern mainly about the short and long-run relationship between economic growth and financial development. We use a multi-steps methodology, namely the Autoregressive Distributed Lag (ARDL) approach and the Vector Error Correction Model (VECM) approach to test this relationship in Côte d’Ivoire from 1980 to 2014. Following our results, we conclude that there is a unidirectional causal relationship, both long run and short run, between GDP per capita and financial development index in Côte d’Ivoire running from economic growth to financial development.

scholarly journals Financial Development, Economic Growth and Energy Consumption Nexus in Cote d’Ivoire

2017 ◽  
Vol 6 (3) ◽  
pp. 1 ◽  
Author(s):  
Diby Kassi ◽  
Alireza Nasiri ◽  
A Jean Roland Edjoukou
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Cote D'ivoire ◽  
Côte D’Ivoire ◽  
Electricity Production ◽  
Development Economic ◽  
Cote D’Ivoire ◽  
Côte D'ivoire ◽  
Long Run

This paper examines the relationship between financial development, economic growth and energy consumption in Cote d’Ivoire over the period 1971-2011. To do so, the study first built a synthetic indicator of financial development through the principal component analysis technique (PCA) and used four energy sources such as electric power consumption, electricity production from renewable sources, electricity production from oil sources and electricity production from hydroelectric sources. Then, employing the autoregressive distributed lag (ARDL) bounds testing approach to cointegration, we find that there is a long run relationship between financial development, economic growth and energy consumption sources. Furthermore, the results of the vector error correction models (VECM) reveal unidirectional causality running from financial development to energy consumption sources, bidirectional causality between economic growth and energy consumption and unidirectional causality from financial development to economic growth in the long run. The mixed results are due to the use of different proxies for energy consumption. Accordingly, this paper recommends that policy makers should solicit the support of financial sector in order to solve energy problems and further the diversification of the energy consumption sources since financial development has a positive effect on energy consumption in long run. Moreover, government should develop public-private partnership (PPP) to stimulate economic growth, improve the access to energy and maintain a sustainable development in Cote d’Ivoire.

scholarly journals The Nexus Between Financial Development, Economic Growth and Poverty Alleviation: PMG-ARDL Estimation

ETIKONOMI ◽  
2021 ◽  
Vol 20 (1) ◽  
pp. 1-12
Author(s):  
Benjamin Korankye ◽  
Zuezhou Wen ◽  
Michael Appiah ◽  
Louisa Antwi
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Policy Implications ◽  
Development Economic ◽  
African Countries ◽  
Causality Test ◽  
Long Run ◽  
Short Run

This study aims to find out the connections between financial development, economic growth, and poverty using panel data from 1985 to 2017 in fourteen African countries that many previous researchers ignore. The study deploys a dynamic Granger causality test to trace the nexus between financial development, economic growth, and poverty reduction in Africa in the long run. First, the upshots suggest a gross domestic product, gross capital formation, price of household consumption, and government expenditure substantially impacting poverty. Besides that, the result also shows a bi-directional in the long run using a PMG estimator. The findings broadly support the view that there is a stable, short-run relationship between financial development, economic growth, and poverty in the error correction terms. However, other variables show no causal relationship in the short run. In practicality, this study suggested some policy implications and supported governmental policies to reduce economic hardship on financial institutions.JEL Classification: G10, O47, I39, C33How to Cite:Korankye, B., Wen, X., Appiah, M., & Antwi, L. (2021). The Nexus Between Financial Development, Economic Growth, and Poverty Alleviation: PMG-ARDL Estimation. Etikonomi: Jurnal Ekonomi, 20(1), 1 – 12. https://doi.org/10.15408/etk.v20i1.15908.

scholarly journals The Econometric Estimation of Macroeconomic Effect of Financial Development on Economic Growth in Cote d’Ivoire: A Long and Short Run Analysis, 1970-2014

2016 ◽  
Vol 8 (7) ◽  
pp. 284
Author(s):  
Drama Bédi Guy Hervé
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Financial Development ◽  
Cote D'ivoire ◽  
Côte D’Ivoire ◽  
Series Data ◽  
Cote D’Ivoire ◽  
Côte D'ivoire ◽  
Long Run ◽  
Short Run

The aim of this article was to investigate empirically the link between financial development and economic growth in Cote d’Ivoire using time series data covering the period of 1970-2014, both in short and long run. The Error correction model and cointegration method were performed to capture the short and long run dynamics of this relationship respectively. The cointegration test result showed evidence of long-run and significant causal between financial development and economic growth in Cote d’Ivoire during the study period. Furthermore, the coefficient of the error correction term (ECT) in the short-run dynamic model was statistically insignificant with inappropriate sign and weak. Consequently, the empirical evidence suggests that countries authorities should promote domestic private credit to boost liquidity level to ensure long-term price stability and strengthen local industries production capacities.

Remittances, Economic Growth and Poverty: A Case of African OIC Member Countries

2018 ◽  
Vol 57 (2) ◽  
pp. 121-143
Author(s):  
Nasim Shah Shirazi ◽  
Sajid Amin Javed ◽  
Dawood Ashraf
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Annual Data ◽  
Simultaneous Equation Model ◽  
African Countries ◽  
Alternative Source ◽  
The Impact

This paper investigates the impact of remittance inflows on economic growth and poverty reduction for seven African countries using annual data from 1992-2010. By using the depth of hunger as a proxy for poverty in a Simultaneous Equation Model (SEM), we find that remittances have statistically significant growth enhancing and poverty reducing impact. Drawing on our estimates, we conclude that financial development level significantly increases the remittances inflows and strengthens poverty alleviating impact of remittances. Results of our study further show a signficant interactive imapct of remittances and finacial develpment on economic growth, suggesting the substitutability between remittance inflows and financial development. We further find that 3 percentage point increase in credit provision to the private sector (financial development) can help eliminate the severe depth of hunger in the region. Remittances, serving an alternative source of private credit, can be effective in this regard. Keywords: Remittance Inflow, Poverty Alleviation, Financial Development, Simultaneous Equation Model

scholarly journals Financial Development, Economic Growth and Poverty Reduction in India: An Empirical Evidence

ETIKONOMI ◽  
2021 ◽  
Vol 20 (1) ◽  
pp. 13-22
Author(s):  
Md. Qaiser Alam ◽  
Md. Shabbir Alam
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Financial Development ◽  
Poverty Reduction ◽  
The Other ◽  
Development Economic ◽  
Impulse Response Functions ◽  
Response Functions ◽  
Long Run ◽  
Short Run

The paper examines the response of poverty reduction based on financial development and economic growth in India. The ARDL and ECM based model techniques analyze the long-run and short-run relationship among the variables in the model. The long-run estimates depict that financial development and economic growth have not significantly impacted poverty reduction and, on the other hand, resulted in injecting inequality and becoming attended to wealthier sections of the society. The short-run estimates show that financial development and economic growth have successfully tried to reduce poverty in India. The results flash a long-run nature of poverty in India and need to designs and formulations of policies that should be instrumental in reducing poverty. Impulse Response Functions' application indicates that poverty reduction will act as a catalyst for further poverty reduction in India.JEL Classification: I32, B26, O40, R15How to Cite:Alam, M. Q., & Alam, M. S. (2021). Financial Development, Economic Growth, and Poverty Reduction in India. Etikonomi: Jurnal Ekonomi, 20(1), 13 – 22. https://doi.org/10.15408/etk.v20i1.18417.

scholarly journals Financial development and economic growth: literature survey and empirical evidence from sub-Saharan African countries

2011 ◽  
Vol 12 (1) ◽  
pp. 11-27 ◽  
Author(s):  
Songul Kakilli Acaravci ◽  
Ilhan Ozturk ◽  
Ali Acaravci
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Banking Sector ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Real Gdp ◽  
Long Run ◽  
Domestic Credit ◽  
Real Gdp Per Capita ◽  
Sub Saharan

In this paper we review the literature on the finance-growth nexus and investigate the causality between financial development and economic growth in Sub-Saharan Africa for the period 1975-2005. Using panel co-integration and panel GMM estimation for causality, the results of the panel co-integration analysis provide evidence of no long-run relationship between financial development and economic growth. The empirical findings in the paper show a bi-directional causal relationship between the growth of real GDP per capita and the domestic credit provided by the banking sector for the panels of 24 Sub-Saharan African countries. The findings imply that African countries can accelerate their economic growth by improving their financial systems and vice versa.

scholarly journals Dynamics of Financial Development, Economic Growth, and Poverty Alleviation: The Indonesian Experience

2018 ◽  
Vol 13 (1) ◽  
pp. 17-30 ◽  
Author(s):  
Sovia Dewi ◽  
M. Shabri Abd. Majid ◽  
Salina Kassim ◽  
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Financial Sector ◽  
Poverty Rate ◽  
Development Economic ◽  
Annual Data ◽  
Distributed Lag ◽  
Long Run ◽  
The Government

Abstract Although the poverty rate in Indonesia has been declining in the last several years, the rate of poverty decline is slowing down. In order to achieve its poverty reduction target within the stipulated time period, the government has stepped up efforts to enhance the contribution of the financial sector towards poverty reduction. This study aims to empirically explore the interlinkages between financial sector development and poverty reduction in Indonesia. Focusing on annual data covering the period from 1980 to 2015, the study adopts the Autoregressive Distributed Lag (ARDL) cointegration approach to examine the long-run relationship between the variables. The study found that there is a long-run relationship between financial development, economic growth, and poverty reduction in Indonesia. It also documented a unidirectional causality running from the financial sector to poverty reduction and a bidirectional causality between economic growth and poverty reduction. Therefore, policies to ensure the conducive growth of the financial sector would go a long way in promoting the economy, creating employment opportunities, and consequently accelerating poverty eradication

INFLATION, LIQUIDITY, AND LONG-RUN GROWTH

2016 ◽  
Vol 23 (2) ◽  
pp. 888-906 ◽  
Author(s):  
Ge Zhou
Keyword(s):  
Economic Growth ◽  
Sensitivity Analysis ◽  
Financial Development ◽  
Investment Projects ◽  
Long Run ◽  
The Us ◽  
The Impact ◽  
Positive Effect ◽  
Data Sensitivity ◽  
Effect On Growth

This paper revisits the long-run relationship between inflation and economic growth by exploring the impact of inflation on investment. I illustrate that inflation may have a positive effect on growth by mitigating the liquidity risks of investment projects. Together with the traditional effect of the “inflation tax” on investment, a hump-shaped relationship between inflation and economic growth can be obtained in a calibrated model, which is consistent with the US postwar data. Sensitivity analysis suggests that the degree of financial development and the magnitude of the aggregate liquidity demand help explain the mixed empirical findings.

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